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FSA HANDBOOK

Coronavirus Food Assistance Program 2

For State and County Offices

SHORT REFERENCE

3-CFAP

UNITED STATES DEPARTMENT OF AGRICULTURE Farm Service Agency

Washington, DC 20250

UNITED STATES DEPARTMENT OF AGRICULTURE

Farm Service Agency

Washington, DC 20250

Coronavirus Food Assistance Program 2

3-CFAP Amendment 1

Approved by: Deputy Administrator, Farm Programs

Amendment Transmittal

A Reason for Issuance

This handbook has been issued to provide policy and procedure for the Coronavirus Food

Assistance Program 2 enacted by the Coronavirus Aid, Relief, and Economic Stability Act

(CARES Act; Pub. L. 116-136).

9-17-20 Page 1

Table of Contents

Page No.

Part 1 Basic Information

1 Overview .............................................................................................................. 1-1

2 Administrative Provisions .................................................................................... 1-4

3 Responsibilities .................................................................................................... 1-5

4 Erroneous Information and Misrepresentation .................................................... 1-12

5 Internal Controls .................................................................................................. 1-13

6-14 (Reserved)

Part 2 CFAP 2 Policy and Procedures Provisions

Section 1 CFAP 2 General Program Policies and Provisions

15 Producer Eligibility .............................................................................................. 2-1

16 Payment Limitation and Payment Eligibility Requirements ............................... 2-3

17 AGI ...................................................................................................................... 2-9

18 Other Eligibility Provisions ................................................................................. 2-10

19 Eligibility Form Requirements ............................................................................ 2-12

20 Timeframe for Filing Eligibility Documents ....................................................... 2-12

21 Eligible Commodities and Signup Period ............................................................ 2-13

22 CFAP 2 Payments and Payment Rates ................................................................ 2-15

23-34 (Reserved)

Section 2 Eligibility Requirements

35 CFAP 2 Eligibility ............................................................................................... 2-51

36 Production, Sales, Inventory, and/or Acreage Reporting for CFAP 2 Eligible

Commodities ........................................................................................................ 2-51

37 Payment Eligibility Requirements ....................................................................... 2-52

38-49 (Reserved)

Part 3 Application Processing and Review for Approval

Section 1 Application Processing

50 Applying for CFAP 2 ........................................................................................... 3-1

51 Reviewing and Acting on AD-3117’s.................................................................. 3-4

52 Revised AD-3117’s and Signature Requirements ............................................... 3-8

53-64 (Reserved)

9-17-20 3-CFAP Amend. 1 TC Page 1

Table of Contents (Continued)

Page No.

Part 3 Application Processing and Review for Approval (Continued)

Section 2 General Payment Provisions for CFAP 2

65 General Payment Provisions ................................................................................ 3-23

66 Payment Limitation Provisions ............................................................................ 3-25

67 CFAP 2 Subsidiary Eligibility ............................................................................. 3-25

68 CFAP 2 Payments ................................................................................................ 3-28

69 CFAP 2 Payment Reports .................................................................................... 3-30

70 Recording CFAP 2 Payments .............................................................................. 3-30

71-84 (Reserved)

Part 4 Dairy

Section 1 Basic Information

85 Overview .............................................................................................................. 4-1

86-95 (Reserved)

Section 2 General Program Policies and Provisions

96 CFAP 2 Dairy Eligibility ..................................................................................... 4-31

97 Reporting Dairy Production ................................................................................. 4-33

98-110 (Reserved)

Section 3 Payments

111 Dairy Payment Components ................................................................................ 4-61

112-124 (Reserved)

Part 5 Eggs and Broilers


125 Overview .............................................................................................................. 5-1

126-135 (Reserved)



Page No.

Part 5 Eggs and Broilers (Continued)


136 Producer, Egg, and Broiler Eligibility ................................................................. 5-31

137 Producer Reporting Requirements for Egg and Broiler Production .................... 5-32

138-147 (Reserved)

Section 3 Payments

148 Broiler and Egg Payment Calculation.................................................................. 5-61

149 CFAP 2 Broiler and Egg Payment Calculation Examples ................................... 5-62

150-164 (Reserved)

Part 6 Livestock


165 Overview .............................................................................................................. 6-1

166-175 (Reserved)


176 Producer and Livestock Eligibility ...................................................................... 6-21

177 Inventory Reporting Requirements for Livestock ............................................... 6-22

178-187 (Reserved)

Section 3 Payments

188 CFAP 2 Livestock Payment Computations ......................................................... 6-45

189-210 (Reserved)

Part 7 Sales Commodities


211 Overview .............................................................................................................. 7-1

212-220 (Reserved)



Page No.

Part 7 Sales Commodities (Continued)


221 General Sales Commodities Eligibility ................................................................ 7-21

222 Sales Certification ................................................................................................ 7-22

223-234 (Reserved)

Section 3 Payments

235 Sales Commodities Payment Components .......................................................... 7-45

236-249 (Reserved)

Part 8 Acreage-Based Crops

Section 1 General Information

250 Overview .............................................................................................................. 8-1

251 General Provisions – Acreage-Based Crops ........................................................ 8-4

252-260 (Reserved)

Section 2 Price Trigger Crops

261 Eligible Price Trigger Crops ................................................................................ 8-25

262 Yields for Price Trigger Crops ............................................................................. 8-27

263-272 (Reserved)

Section 3 Flat-Rate Crops

273 Eligible Flat-Rate Crops ...................................................................................... 8-51

274-283 (Reserved)

Section 4 Payments

284 Price Trigger Crops Payment Calculation ........................................................... 8-71

285 Flat-Rate Crops Payment Calculation .................................................................. 8-75

Exhibits

1 Reports, Forms, Abbreviations, and Redelegations of Authority

2 Definitions of Terms Used in This Handbook

3-19 (Reserved)

20 AD-3117, Coronavirus Food Assistance Program 2 (CFAP 2) Application


Par. 1

Part 1 Basic Information

1 Overview

A Handbook Purpose

This handbook provides the following:

• State and County Offices with policy and procedures for administering CFAP 2

• specific eligibility and payment calculation provisions as applicable for designated

commodities.

Provisions in this handbook must not be revised without prior approval from the National

Office. Any requests or amendments must be sent to DAFP by e-mail to the PPB Mailbox

according to 1-NAP (Rev. 2), paragraph 11. In the subject line, include State abbreviation,

CFAP 2, and date. For example: NY/CFAP 2/06-01-2020.

The objective of CFAP 2 is to provide direct payments to producers who have been impacted

by COVID-19 resulting in:

• actual losses for agricultural producers where prices and market supply chains have been

impacted

• lost demand and short-term oversupply for the 2020 marketing year.

B Authority and Responsibility

SND has the authority and responsibility for the programs prescribed in this handbook.

C Sources of Authority

Following are the sources of authority for CFAP 2:

• the Coronavirus Aid, Relief, and Economic Stability Act (CARES Act, Pub. L. 116-136)

• CCC Charter Act (15 U.S.C. 714c(b), (d), and (e))

• 7 CFR Part 9.

9-17-20 3-CFAP Amend. 1 Page 1-1

Par. 1

1 Overview (Continued)

D Related FSA Handbooks

Handbooks related to CFAP 2 include:

• 9-AO for investigating program violations

• 1-APP for appeals

• 32-AS for records management

• 1-CM for signature requirements, power of attorney, deceased individuals and dissolved

entities, maintaining the name and address file, assignments and producer disqualification

and debarment

• 3-CM for farm, tract, and crop data

• 11-CM for maintaining customer record

• 2-CP for acreage reporting

• 6-CP for HELC and WC provisions

• 7-CP for finality rule and equitable relief

• 1-FI for processing payments initiated

• 61-FI for prompt payment and interest penalties

• 62-FI for reporting data to IRS

• 63-FI for Assignment and Joint Payment System

• 64-FI for establishing and reporting receipts and receivables on NRRS

• 2-INFO for handling requests for information (FOIA)

• 3-PL (Rev. 2) for web-based subsidiary files for 2009 and subsequent years

• 5-PL for payment eligibility, payment limitation and AGI.


Par. 1


E Delegations of Authority and Approvals

The authority to approve routine CFAP 2 applications prepared according to this handbook

may be redelegated, in writing according to 16-AO, by COC to CED, except forms and

documents in which CED has a monetary interest.

Follow this table for delegated authority for approval of CFAP 2 applications.

IF the producer is… THEN the approval authority is…

a Federal or non-Federal, State or County

Office employee

CED.

COC member

DD

SED

STC member

CED COC.

any producer in a recording county

Notes: Questionable cases may be referred to the next higher authority for determination.

Any employee serving as Acting CED is viewed as CED.

F CFAP 2 Websites

The following websites provide information used to administer CFAP 2.

Website Content Website Address

CFAP 2 Application https://intranet.fsa.usda.gov/fsa/applications.asp

CFAP 2 Payment Rates https://www.farmers.gov/CFAP 2

FFAS Employee

Forms/Publications

Online Website

http://intranet.fsa.usda.gov/dam/ffasforms/forms.html

Notices http://www.fsa.usda.gov/notices

eAuthentication https://www.eauth.usda.gov/mainPages/index.aspx

FSA Box https://nrcs.account.box.com/login

CFAP 2 Training

Materials and Payment

Calculator

https://inside.fsa.usda.gov/program-areas/dafp/dap/CFAP

2/index


https://intranet.fsa.usda.gov/fsa/applications.asp

https://www.farmers.gov/mfp

http://intranet.fsa.usda.gov/dam/ffasforms/forms.html

http://www.fsa.usda.gov/notices

https://www.eauth.usda.gov/mainPages/index.aspx

https://nrcs.account.box.com/login

https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Finside.fsa.usda.gov%2Fprogram-areas%2Fdafp%2Fdap%2Fcfap%2Findex&data=02%7C01%7C%7C28f9138cf49a4a1fc7d508d7fcd517f7%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C0%7C0%7C637255864465109763&sdata=zL0GNkXfUnaS00WxCM65Q6HauS0pUaPIhCM1RwLq5zk%3D&reserved=0

https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Finside.fsa.usda.gov%2Fprogram-areas%2Fdafp%2Fdap%2Fcfap%2Findex&data=02%7C01%7C%7C28f9138cf49a4a1fc7d508d7fcd517f7%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C0%7C0%7C637255864465109763&sdata=zL0GNkXfUnaS00WxCM65Q6HauS0pUaPIhCM1RwLq5zk%3D&reserved=0

Par. 2

2 Administrative Provisions

A Applicability and Administration [7 CFR 9.1]

(a) This part specifies the eligibility requirements and payment calculations for the

Coronavirus Food Assistance Program (CFAP 2). CFAP 2 will provide

payments with respect to commodities that have been significantly impacted by

the effects of the COVID-19 outbreak. Payments will be made with respect to

only commodities produced in the United States; commodities imported into

the United States may not be used to determine any payment made under this

part.

(b) The program is administered under the general supervision and direction of

the Administrator, Farm Service Agency (FSA) with the assistance of the

Agricultural Marketing Service (AMS).

(c) The FSA State committee will take any action required by this part that an

FSA county committee has not taken. The FSA State committee will also:

(1) Correct, or require an FSA county committee to correct, any action taken

by such county FSA committee that is not in accordance with the

regulations of this part; or

(2) Require an FSA county committee to withhold taking any action that is not

in accordance with this part.

(d) No provision or delegation to an FSA State or county committee will preclude the

FSA Administrator, the Deputy Administrator, or a designee or other such person,

from determining any question arising under the programs of this part, or from

reversing or modifying any determination made by an FSA State or county

committee.

B Forms

Any document that collects data from a participant, regardless of whether the participants

signature is required:

• is subject to the Privacy Act and information collection procedures

• requires approval or clearance by the following applicable office:

• DAFP

• FPAC

• OMB.

Forms, worksheets, applications, and other documents other than those provided in this

handbook or issued by the National Office are not authorized for CFAP 2 and must not be

used.


Par. 3

3 Responsibilities

A STC Responsibilities

Within the authorities and limitations in this handbook and 7 CFR Part 9, STC’s must:

• direct the administration of CFAP 2

• ensure that State and County Offices follow CFAP 2 provisions

• thoroughly document all actions taken in the STC minutes

• handle appeals according to 1-APP

• require reviews be conducted by DD to ensure that County Offices comply with CFAP 2

provisions according to paragraph 5

Note: STC may establish additional reviews to ensure that CFAP 2 is administered

according to these provisions.

• take any oversight actions necessary to ensure that IPIA provisions are met to prevent

County Offices from issuing any improper payments

• STC may approve or disapprove any CFAP 2 application except those in which an STC

member has a monetary interest

• comply with all CFAP 2 provisions.


Par. 3

3 Responsibilities (Continued)

B SED Responsibilities

Within the authorities and limitations in this handbook and 7 CFR Part 9, SED’s will:

• ensure that County Offices follow CFAP 2 provisions

• thoroughly document all actions taken in the STC minutes


• ensure that DD’s or other designated employees conduct reviews according to

paragraph 5

Note: SED may establish additional reviews to ensure that CFAP 2 is administered


• ensure that all County Offices publicize CFAP 2 provisions

• immediately notify the National Office CFAP 2 Program Manager of software problems,

incomplete or incorrect procedures, specific problems, or findings



• STC may approve or disapprove any CFAP 2 application except forms or documents in

which an STC member has a monetary interest

• comply with all CFAP 2 provisions.


Par. 3


C DD Responsibilities

Within the authorities and limitations in this handbook and 7 CFR Part 9, DD’s will:

• ensure that COC’s and County Offices follow CFAP 2 provisions

• ensure that the CED’s review of the first five CFAP 2 applications from each county are

sufficiently thorough to confirm:

• signatures are included

• values on AD-3117 are correct in the software based on producer’s certification

• eligibility requirements are understood

• payments are proper

• on the basis of the review documentation received, provide CED authority to enter COC

(or delegated) actions in the software upon completing the first five CFAP 2 applications

for any commodity (reviewed by CED) from each county

Note: If the initial documentation received contains evidence of misunderstood policy,

provide clarification of that policy to the county employees until authorization to

make payments is warranted.

• conduct reviews as determined by SED according to paragraph 5

Note: SED may establish additional reviews to ensure that CFAP 2 is administered


• ensure that all County Offices publicize CFAP 2 provisions

• immediately notify the National Office CFAP 2 Program Manager through their State

FSA Office specialist responsible for CFAP 2 of software problems, incomplete or

incorrect procedures, specific problems, or findings


County Offices from issuing any improper payments.


Par. 3


D COC Responsibilities

Within the authorities and limitations in this handbook and 7 CFR Part 9, COC’s will:

• fully comply with all CFAP 2 provisions

• ensure that CED directs the County Office to follow all CFAP 2 provisions

• review, approve, and disapprove CFAP 2 applications, and document in the COC minutes

Note: COC may redelegate authority to CED to review and approve routine CFAP 2

applications. Redelegation of authority must be documented in the COC minutes.

All adverse actions must go to COC for review.

• submit CFAP 2 applications and documentation for specialty crops to AMS for review

when COC questions the reasonableness of the application


• thoroughly document all actions taken in the COC minutes

• ensure that the County Office publicizes CFAP 2 provisions

• take any oversight actions necessary to ensure that IPIA provisions are met to prevent the

County Office from issuing any improper payments.

• ensure that FSA assists persons by providing program information as it becomes

available, using a variety of different methods.

Notes: Because of the limits of FSA resources, publication of program information may

or may not be by direct mail or on an individual basis. FSA meets its publication

responsibilities by making broad program announcements in press releases, print

and electronic media, Federal Register documents, radio and television

announcements, and through posting program information in USDA Service

Centers.


Par. 3


D COC Responsibilities (Continued)

The reality of limited resources has increased the participant’s responsibility for

being aware of program provisions. FSA cannot be responsible for reaching out

to every potential program participant with all program information. Participants

must seek information on program details and not wait for FSA to individually

contact them about program provisions. As resources permit, COC will ensure

that program provisions are publicized and maintain a record of any and all

publicity efforts, including postings in Service Centers.

The CFAP 2 Fact Sheet:

• may be used to provide general program information

• is available at https://www.fsa.usda.gov/news-room/fact-sheets/index.

E CED Responsibilities

Within the authorities and limitations in this handbook and 7 CFR Part 9, CED’s will:


• ensure that all County Office employees fully comply with all CFAP 2 provisions

• review the first five CFAP 2 applications and eligibility documentation for completeness

and accuracy and send to DD to obtain authority to enter COC action in the software

Note: COC action must be entered in the software immediately upon receipt of authority

from DD.

• if so delegated, promptly review, approve routine CFAP 2 applications, and document in

the COC minutes

Notes: All adverse actions must go to COC for review.

CED may not redelegate authority to review and approve routine CFAP 2

applications to any other County Office employees.


https://www.fsa.usda.gov/news-room/fact-sheets/index

Par. 3


E CED Responsibilities (Continued)

● issue any adverse determination letter according to 1-APP

• ensure that all program eligibility requirements have been met by producers before

issuing any payment to ensure that IPIA provisions are met


• thoroughly document all actions taken in the COC minutes

• immediately notify SED, through DD, of software problems, incomplete or incorrect

procedures, specific problems, or findings



• ensure that FSA assists persons by providing program information as it becomes

available, in a variety of different methods.

F PT Responsibilities

Within the authorities and limitations in this handbook and 7 CFR Part 9, PT’s will:


• immediately notify CED of software problems, incomplete or incorrect procedures, or

specific problems

• ensure that all program eligibility requirements have been met by producers before

issuing any payment to ensure that IPIA provisions are met.

9-17-20 3-CFAP Amend. 1 Page 1-10

Par. 3


G Producer Responsibilities

The producer is responsible for being aware of program provisions and accurately reporting

all required information as applicable on AD-3117.

Producers who are approved for participation in CFAP 2 are required to retain documentation

in support of their application for 3 years after the date of approval.

Participants receiving CFAP 2 payments or any other person who furnishes such information

to USDA must permit authorized representatives of USDA or GAO during regular business

hours, to enter the agricultural operation and to inspect, examine, and to allow representatives

to make copies of books, records or other items for the purpose of confirming the accuracy of

the information provided by the participant.

Programs administered by DAFP require accurate information from producers. Producers

must understand that failure to provide complete and accurate information and records could

result in any or all of the following:

• an application for CFAP 2 assistance being disapproved, COC adjusted, or approved but

ineligible for payment

• the producer(s) being determined ineligible for FSA programs for the year or multiple

years

• the producer(s) being liable under any civil or criminal fraud statute or any statute or

provision of law.

9-17-20 3-CFAP Amend. 1 Page 1-11

Par. 4

4 Erroneous Information and Misrepresentation

A Impact of Providing Erroneous Information and Misrepresentation

In the event that any application for a CFAP 2 payment resulted from erroneous information

reported by the producer, the payment will be recalculated, and the producer must refund any

excess payment to USDA. If the error was the producer’s error, the refund must include

interest to be calculated from the date of the disbursement to the producer.

If USDA determines that the producer’s application misrepresented either the total amount or

producer’s share of the crop, head of livestock, or production, or if the CFAP 2 payment

would exceed the payment as calculated based on the correct amount of production and

share, the application will be disapproved and the participant must refund to USDA all

CFAP 2 payments made to the producer with interest from the date of disbursement.

If any corrections to the ownership interest in the crop are made and would result in a lower

CFAP 2 payment, the producer must refund the difference with interest from date of

disbursement.

Any required refunds must be resolved according to debt settlement regulations in

7 CFR Part 3.

B Perjury

In either applying for or participating in CFAP 2, or both, the producer is subject to laws

against perjury and any penalties and prosecution resulting therefrom, with these laws

including but not limited to 18 U.S.C. 1621. If the producer willfully makes and represents

as true any verbal or written declaration, certification, statement, or verification that the

producer knows or believes not to be true, in the course of either applying for or participating

in CFAP 2, or both, then the producer is guilty of perjury and, except as otherwise provided

by law, may be fined, imprisoned for not more than 5 years, or both, regardless of whether

the producer makes such verbal or written declaration, certification, statement, or verification

within or without the United States.

C Joint and Several Liability

All persons and legal entities with a financial interest in an operation or in an application for

payment determined to have been paid incorrectly are jointly and severally liable for any

refund, including related charges, that is determined to be due CCC for any reason.

9-17-20 3-CFAP Amend. 1 Page 1-12

Par. 5

5 Internal Controls

A DD Reviews

DD’s or other employee(s) designated by SED will review 5 of the first 35 CFAP 2

applications filed in a Service Center, assigned by the internal control’s software, to verify

the following:

• a signed AD-3117 was filed by the person or authorized representative of a legal entity

that includes the producer’s self-certification of eligible commodities

• supporting eligibility documents have been filed that include:

• a signed CCC-902 (or CCC-901 if applicable) by the person or authorized

representative of a legal entity

Note: CCC-902 must be completed to provide name(s), address(es), TIN, and

citizenship status has been provided for all persons and members, partners, or

stockholders of a legal entity. Contributions of foreign persons must also be

provided.

• a signed CCC-941 and CCC-942 (if applicable) for persons, legal entities, and all

members, partners, or stockholders of the legal entity, except general partnerships and

joint ventures

● AD-1026 is certified according to the agreement in AD-3117, Part A (items 8, 8A,

8B, and 9).

6-14 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 1-13

Par. 15

Part 2 CFAP 2 Policy and Procedures Provisions

Section 1 CFAP 2 General Program Policies and Provisions

15 Producer Eligibility

A Producer

[7 CFR Part 9 Subpart C §9.201] A producer is a person or legal entity who shares in the

risk of producing a commodity. The term does not include contract growers. Producers who

are not in the business of farming at the time of application are not considered a producer.

[7 CFR Part 9 Subpart A §9.3] To be eligible for a CFAP 2 payment, a person or legal

entity must be 1 of following:

• citizen of the United States

• resident alien (possessing a Resident Alien Card (I-551)

• partnership of citizens of the United States

• corporation, LLC, or other organizational structure organized under State law

• Indian Tribe or Tribal organization, as defined in section 4(b) of the Indian

Self-Determination and Education Assistance Act (25 U.S.C. 5304)

• foreign person or foreign entity who meets Foreign Person Rules as described in 5-PL.


Par. 15

15 Producer Eligibility (Continued)

B Ineligible Producer

The following persons or legal entities are ineligible for CFAP 2 payments:

• Federal, State, and local governments, including public schools as defined in 5-PL

• persons or legal entities who did not have a reported ownership interest in any of the

eligible commodities, including contract growers

• persons and legal entities that have been suspended or debarred or otherwise excluded

from participating in Federal programs (1-CM, paragraph 823)

• persons and legal entities that do not meet payment limitation, payment eligibility, AGI

and HELC/WC requirements for CFAP 2.


Par. 16

16 Payment Limitation and Payment Eligibility Requirements

A Payment Limitation

[7 CFR Part 9 Subpart A §9.7] The total amount of CFAP 2 payments that a person or

legal entity (excluding general partnerships and joint ventures) may receive is $250,000,

except as provided in subparagraph B.

Payments to a program applicant that is a joint operation, including a general partnership or

joint venture, cannot exceed $250,000 per person or legal entity that comprise first level

ownership of the general partnership or joint venture, unless the first level member is another

joint operation.

B Optional Increase in Limitation for Corporations, LLC’s, LP’s, Trusts, or Estates

[7 CFR Part 9 Subpart A §9.7] For CFAP 2 applicants that are a corporation, LLC, LP,

trust, or estate, an authorized representative of the legal entity may seek an increase in the

$250,000 payment limitation based on the member’s, stockholder’s, partner’s, beneficiary’s,

or heir’s contribution of active personal labor or active personal management, or a

combination thereof (as defined in 5-PL).

A contribution of at least 400 hours of active personal labor, active personal management, or

a combination thereof must be provided by an individual person who is a member,

stockholder, partner, beneficiary, or heir from any level of ownership in the organizational

structure to qualify the legal entity for the optional increase in payment limitation.

Note: The sole-member of an embedded LLC or grantor of a revocable trust using an SSN

may qualify the corporation, LLC, or LP for the optional increase in payment

limitation.

The maximum limitation a corporation, LLC, LP, trust, or estate may receive is $750,000.

The authorized representative of the legal entity must certify on AD-3117, Part H the

name(s) of the entity members providing at least 400 hours of active personal labor, active

personal management, or a combination thereof.

Notes: For embedded members who are a sole-member LLC or grantor of a revocable trust

using an SSN, record the individual person’s name contributing at least 400 hours of

active personal labor, active personal management, or a combination thereof.

Spousal provisions as found in 5-PL do not apply.


Par. 16

16 Payment Limitation and Payment Eligibility Requirements (Continued)

B Optional Increase in Limitation for Corporations, LLC’s, LP’s, Trusts, or Estates

(Continued)

Revocable trusts using an SSN may seek an increase in payment limitation if the trust

provides evidence, to COC’s satisfaction, documenting there is more than 1 beneficiary of

the trust, such as a husband and a wife. The evidence must document who the beneficiaries

are before the start of signup for CFAP 2. Evidence may include, but is not limited to, a copy

of the executed trust agreement.

The following table provides qualifying requirements for the optional increase in payment

limitation.

IF…

THEN the corporation’s, LLC’s,

or LP’s payment limitation is…

none of the members, stockholders, partners,

beneficiaries, or heirs provide labor,

management, or combination thereof

$250,000.

1 person holding an ownership interest as a

member, partner, stockholder, beneficiary, or heir

in the organizational structure provides at least

400 hours of active personal labor or active

personal management or combination thereof

$250,000.

2 persons holding an ownership interest as a





$500,000.

3 persons holding an ownership interest as a





$750,000.


Par. 16


C Examples

The following examples illustrate qualifying requirements for corporations, LLC’s, LP’s,

estates, and trusts necessary to recognize the increased payment limitation to either $500,000

or $750,000.

Example 1: Payment limitation for a single member corporation.

Entity/Members

Share

Current

Pay

Limit

Labor/Management

Contribution

Payment

Limitation

Increased

Effective

Payment

Limitation

ABC Corporation $250,000 -0- $250,000

Individual A 100% 0 - <400 hours $250,000

Example 2: Payment limitation for a 2-member corporation (only 1 member provides

400+ hours of labor/management).

Entity/Members

Share

Current

Pay

Limit

Labor/Management

Contribution

Payment

Limitation

Increased

Effective

Payment

Limitation

ABC Corporation $250,000 $0 $250,000

Individual A 50% +400 hours $250,000

Individual B 50% (0) $250,000

Example 3: Payment limitation for a 3-member corporation (only 2 members provide

400+ hours of labor/management).

Entity/Members

Share

Current

Pay

Limit

Labor/Management

Contribution

Payment

Limitation

Increased

Effective

Payment

Limitation

ABC Corporation $250,000 +$250,000 $500,000

Individual A 33.33% +400 hours $250,000

Individual B 33.34% +400 hours $250,000

Individual C 33.33% 0 hours $250,000


Par. 16


C Examples (Continued)

Example 4: Payment limitation for a 2-member corporation with embedded entities as

members.

Entity/Members Share

Current

Pay

Limit

Labor/Management

Contribution

Payment

Limitation

Increased

Effective

Payment

Limitation

AB Corporation $250,000 $500,000 $750,000

Corporation A –

50%

$250,000

Corporation X

Joe 50%

John 50%

50%

+400 hours

+400 hours

$250,000

$250,000

Corporation Y

Bob 50%

Larry 50%

50%

-0-

-0-

$250,000

$250,000

$250,000

Corporation B –

50%

50%

$250,000

Sam 50% +400 hours $250,000

Pete 50% -0- $250,000

Example 5: Payment limitation for an estate with 3 heirs each contributing 400+ hours

labor or management.

Entity/Members Share

Current

Pay

Limit

Labor/Management

Contribution

Payment

Limitation

Increased

Effective

Payment

Limitation

AB Estate $250,000 $500,000 $750,000

Heir No. 1

33.33%

+400 hours

$250,000

Heir No. 2

33.33%

+400 hours

$250,000

Heir No. 3

33.34%

+400 hours

$250,000


Par. 16


D Attribution of Payments

[7 CFR Part 9 Subpart A §9.7] CFAP 2 payments to persons and legal entities that do not

qualify for the increased payment limitation will be pay limited according to the rules for

attribution in 7 CFR 1400.105.

CFAP 2 payments made directly or indirectly to a person or legal entity will be combined

and limited to the per person or legal entity.

CFAP 2 payments to corporations, LLC’s, LP’s, trusts, and estates qualified for the increased

payment limitation will be limited to the lesser of the increased limitation or the sum of the

amount that each eligible member, stockholder, partner, heir, or beneficiary of the legal

entity may receive, regardless of ownership share.

Example 1: ABC Corporation pay limit is increased to $500,000 based on 2 members

contributing labor or management. Member 1 (90 percent ownership share)

maximum payment limitation is $250,000. Member 2 (10 percent ownership

share) maximum payment limitation is $250,000. In this example, each eligible

member may receive (directly or indirectly) up to $250,000. The sum of

payments the eligible members may receive is $500,000 ($250,000 + $250,000),

regardless of ownership share. Total payment to ABC Corporation would be

$500,000.

Note: Payments will be reduced to ABC Corporation if any member receives

prior payments through another farming operation or is otherwise

ineligible for CFAP benefits (i.e. AGI non-compliant).

CFAP 2 payments to a legal entity will be tracked through 4 levels of ownership and will be

reduced for members, partners, stockholders, heirs, or beneficiaries holding an ownership

interest below the 4th level.

Rules for “common attribution” (such as minor children) do not apply to CFAP 2 payments.

E Changes in Farming Operations to Add Persons (Including Spouses)

Applicants seeking to add persons (including spouses) to a farming operation for CFAP 2;

resulting in an increase in the number of persons to which payment limitation applies; must

be legitimate, documented, and effective for the year that CFAP 2 benefits are being sought.

For example, if the farming operation is requesting CFAP 2 benefits for 2019 crop corn, the

addition of a person must be effective for the 2019 program year and all contracts,

applications and eligibility forms must be corrected to reflect the change.


Par. 16


E Changes in Farming Operations to Add Persons (Including Spouses) (Continued)

For legal entities, including general partnerships, the farming operation must provide the

organizational documents to COC and the documents must evidence the person was legally

added as a member, partner or stockholder to the legal entity.

For informal joint ventures, the new member must provide acceptable documentation to

COC’s satisfaction and prove the member made “at-risk” contributions, commensurate with

their claimed share of the farming operation. Documentation may include, but is not limited

to signed loan notes and security agreements, proof of payment for capital, land, or

equipment contributions, etc.

For farming operations seeking to qualify for the optional increase in payment limitation,

COC must consider whether the new person being added to the farming operation made a

contribution of 400+ hours of active personal labor or active personal management.

Example 1: An applicant is seeking CFAP 2 benefits for 2019 corn, requesting

consideration to add a person (stockholder) to the corporate business structure

and requesting the option increase in payment limitation applicable to

corporations. The addition of the stockholder must be documented to have

occurred before June 1, 2019 (following FSA’s rules for attribution in

7 CFR Part 1400). Additionally, COC must consider whether the added

stockholder made a 400+ hour contribution of labor or management for the

increased payment limitation. In this situation, the farming operation must

also correct its representations on all 2019 contracts, applications, acreage

reports and eligibility document to reflect the change in the farming operation.

Example 2: An applicant is seeking CFAP 2 benefits for 2020 dairy and requesting

consideration to recognize the farming operation as a husband and wife joint

venture. COC must consider the couple’s marital status for the time period

CFAP 2 benefits are requested and whether the spouse made at-risk

contributions to the farming operation commensurate with the claimed share

of the farming operation for the year which CFAP 2 benefits are being sought.

If the farming operation participated in DMC and received program benefits,

the DMC contract must also be revised to recognize the addition of the spouse

to the farming operation.

The addition of a person to a farming operation must be documented on CCC-902 and will

apply to all programs in which the farming operation participates.


Par. 17

17 AGI

A AGI Requirements

[7 CFR Part 9 Subpart A §9.7] Rules for AGI, as found in 5-PL, apply to CFAP 2

payments.

To be eligible for payment, a person or legal entity (including members, stockholders or

partners of the legal entity) must have an average AGI for program year 2020 that does not

exceed the $900,000 limitation, unless, at least 75 percent of the person’s or legal entity’s

average AGI is derived from farming, ranching or forestry operations. See 5-PL for defining

income from farming, ranching, or forestry operations.

The 3 base years used to compute the average AGI and Farm AGI are 2016, 2017, and 2018.

CCC-941 must be completed by all CFAP 2 applicants.

Applicants exceeding the $900,000 limitation may complete CCC-942 and obtain a

certification from a licensed CPA or attorney verifying that 75 percent of AGI is derived

from farming, ranching or forestry operations.


Par. 18

18 Other Eligibility Provisions

A HELC/WC Compliance

Certification of conservation compliance (HELC/WC compliance), AD-1026, and provisions

of 6-CP statutorily apply to CFAP 2. The producer applying for CFAP 2 agrees to

conservation compliance provisions on AD-3117, Part A, items 8, 8A, 8B, and 9.

CFAP 2 applicants that have AD-1026 continuous certification with box 5B, agreeing to

AD-3117, Part A, item 8A, do not have to file new AD-1026. CFAP 2 applicants filing

AD-1026 for the first time can certify AD-1026 with box 5B if they meet those provisions.

These producers do not have to establish farm records for which their certification of

compliance applies (6-CP, subparagraph 641 D). A producer’s certification of box 5B for

CFAP 2 is a certification that the producer:

• does not participate in any USDA benefits subject to HELC and WC compliance except

Federal Crop Insurance or CFAP 2

• only has interest in land devoted to agriculture that is exclusively used for perennial crops

(excluding sugar cane), such as tree fruits, tree nuts, grapes, olives, native pasture, and

perennial forage

Note: If the applicant produces alfalfa, the applicant must contact NRCS to determine

whether this production qualifies as the production of a perennial crop.

• has not converted a wetland after December 23, 1985.

Note: The December 23, 1985, AD-3117 wetland conversion certification date is used as

low risk assessment of conservation compliance violation to forego farm records

establishment for producers that have perennial crops only. A wetland converted

December 24, 1985, through November 28, 1990 (determination of CW) is not a

conservation compliance violation (those acreages may incur a wetland planting

violation but not a conversion violation).

9-17-20 3-CFAP Amend. 1 Page 2-10

Par. 18

18 Other Eligibility Provisions (Continued)

A HELC/WC Compliance (Continued)

Livestock, nursery, and aquaculture applicants that do not have any interest in agricultural

land (such as cropland, pastureland, rangeland, or forestland) certify to compliance by

checking box 5A of AD-1026 (discussed in AD-3117, Part A, item 8B), as they do with other

USDA benefits subject to conservation compliance (farm records are not required; see 6-CP,

subparagraph 641 D).

All other producers (discussed in AD-3117, Part A, item 8) that do not have continuous

AD-1026 certification of compliance on file, must file a complete AD-1026 according to

provisions in 6-CP (including certification of Part B HELC/WC compliance questions).

6-CP, subparagraph 641 D states these producers must establish farm records to which their

certification of compliance applies before recording AD-1026 as “certified”. However, for

CFAP 2, County Offices will record AD-1026 as “certified” when received. County Offices

will keep these AD-1026’s in a “needs to establish farm records folder” if information is not

readily available to establish them. The producers will be contacted to do so as workload and

time allows. Certification of AD-1026, recorded in subsidiary is still required for the

CFAP 2 payment to process.

B Controlled Substance

State or Federal controlled substances convictions for planting, cultivating, growing,

producing, harvesting, storing, trafficking, and possession apply to CFAP 2. See 1-CM,

paragraph 871.

9-17-20 3-CFAP Amend. 1 Page 2-11

Par. 19

19 Eligibility Form Requirements

A Payment Limitation, Payment Eligibility, and AGI Forms

The automated CCC-902 will be completed according to 5-PL and 3-PL (Rev.2) by all

CFAP 2 applicants to collect:

• names, addresses, and taxpayer identification numbers for the person or legal entity (and

its members)

• member information for legal entities (including joint operations)

• citizenship status for the person or legal entity (and its members)

• contributions of foreign persons.

Notes: The manual CCC-902I (Parts A and B), CCC-902E (Parts A, B, and C), and

CCC-901 (if applicable) may be used to collect the required information for CFAP 2.

Information collected on manual forms must be loaded in Business File according to

3-PL (Rev. 2).

Applicants who are foreign persons or foreign entities as defined in 5-PL must

complete CCC-902 to collect contributions of the foreign persons.

CCC-903 will be used to document COC payment limitation, producer eligibility, and

foreign person eligibility determinations.

CCC-941 will be used to collect the certification of AGI for the CFAP 2 applicant.

CCC-942 will be used to collect farm AGI certifications from the CFAP 2 applicant and CPA

or attorney, as applicable.

B HELC/WC Eligibility Forms

CFAP 2 applicant and all affiliates will complete AD-1026 according to 6-CP.

20 Timeframe for Filing Eligibility Documents

A Deadline for Filing Eligibility Documents

[7 CFR Part 9 Subpart A §9.4] CFAP 2 applicants must file all CFAP 2 eligibility

documents within 60 calendar days from the date of signing a CFAP 2 application.

Failure to timely provide all eligibility forms may result in no payment or a reduced payment.

9-17-20 3-CFAP Amend. 1 Page 2-12

Par. 21

21 Eligible Commodities and Signup Period

A Eligible Commodities

CFAP 2 provides financial assistance to eligible producers with an ownership interest in the

following eligible commodities that have been determined to have been impacted by the

effects of the COVID-19 outbreak.

Commodity

Category

Eligible Commodity

Dairy

(See Part 4) • Dairy (milk)

Eggs and

Broilers

(See Part 5)

• Broilers

• Shell Eggs

• Dried Eggs

• Liquid Eggs

• Frozen Eggs

Livestock

(See Part 6) • Beef Cattle

• Hogs and Pigs

• Sheep and Lambs

Sales

Commodities

(See Part 7)

• Aquaculture grown in a controlled environment

• Nursery crops and floriculture

• Other livestock (excluding breeding stock) not included under the price

trigger category that were grown for food, fiber, fur, or feathers

• Other crops not included in the price trigger and flat-rate categories,

including tobacco

• Goat milk

• Mink (including pelts)

• Mohair

• Wool

• Other commodities as determined by the Secretary.

Acreage Based

Crops

(See Part 8)

Price Trigger Crops

• Barley • Sorghum, Dual Purpose • Upland Cotton

• Corn • Soybeans • Wheat

• Sorghum • Sunflowers

Flat-Rate Crops

• Alfalfa • Indigo • Rice, Sweet

• Amaranth grain • Industrial Rice • Rice, Wild

• Buckwheat • Kenaf • Rye

• Canola • Khorasam • Safflower

• Cotton, ELS • Millet • Sesame

• Cambe (Colewort) • Mustard • Speltz

• Einkorn • Oats • Sugar Beets

• Emmer • Peanuts • Sugarcane

• Flax • Quinoa • Teff

• Guar • Rapeseed • Triticale

• Hemp • Rice

9-17-20 3-CFAP Amend. 1 Page 2-13

Par. 21

21 Eligible Commodities and Signup Period (Continued)

B CFAP 2 Signup Period

Eligible producers who had an ownership share interest in 1 or more of the eligible CFAP 2

commodities can file a CFAP 2 application by submitting a completed AD-3117 to any

USDA Service Center from September 21, 2020, through December 11, 2020. The

recording county will be responsible for acting on AD-3117.

AD-3117’s submitted or postmarked after December 11, 2020, will be disapproved. See

subparagraph 51 E.

9-17-20 3-CFAP Amend. 1 Page 2-14

Par. 22

22 CFAP 2 Payments and Payment Rates

A CFAP 2 Payments

The CFAP 2 payment is:

• available to eligible producers who had or still have an ownership interest in 1 or more of

the eligible commodities

• not subject to sequestration

• not subject to offset.

Generally, the payment will be issued as a single payment for each producer nationwide;

however, subsequent payments may be issued as more data is received from each producer.

See paragraph 52 on revising AD-3117’s.

Payments will be determined according to the following table.

Commodity

Category

Part 1 (CARES Act Funds)

Part 2 (CCC Funds)

Dairy

(See Part 4)

For each eligible producer, a

payment rate per pound of milk

production including dumped milk

for the months of April through

August 2020, and estimated

production from September

through December 2020.

Broiler and Eggs

(See Part 5)

For each eligible producer, a

payment rate per head for broilers,

per dozen for shell eggs, and per

pound for dried, liquid, and frozen

egg 2019 total production.

9-17-20 3-CFAP Amend. 1 Page 2-15

Par. 22

22 CFAP 2 Payments and Payment Rates (Continued)

A CFAP 2 Payments (Continued)

Commodity

Category

Part 1 (CARES Act Funds)

Part 2 (CCC Funds)

Livestock

(See Part 6)

Payments will be based on the

highest owned inventory of

eligible livestock, excluding

breeding stock, on a date

selected by the eligible producer

from April 16, 2020, through

August 31, 2020.

Sales Commodities

(See Part 7)

FOR TOBACCO ONLY -

Payment calculations will use a

sales-based approach based on

5 payment gradations associated

with the producer’s 2019 sales

of the commodity multiplied by

the payment rate for that range.

Payment calculations for the

sales commodities will use a

sales-based approach based on

5 payment gradations associated

with the producer’s 2019 sales

of the commodity multiplied by

the payment rate for that range.

Acreage Based

Crops

(See Part 8)

For each eligible producer,

payments will be based on the

number of 2020 acres of either

price-trigger or flat-rate crops.

9-17-20 3-CFAP Amend. 1 Page 2-16

Par. 22


B CFAP 2 Payment Rates

CFAP 2 payment rates are determined by CCC.

The payment rates are available at http://farmers.gov/CFAP 2. Payments rates are

established according to the following table.

Commodity

Category

Eligible Commodity

Unit of

Measure

CARES

Act

Payment

Rate

CCC

Payment

Rate

Dairy Dairy (Milk) LBS $0.012

Eggs and

Broilers

Shell Eggs DZ $0.05

Liquid Eggs LBS $0.04

Frozen Eggs LBS $0.14

Dried Eggs LBS $0.05

Broilers HD $1.01

Livestock

(Excluding

Breeding

Stock)

Beef Cattle HD $55.00

Hogs and Pigs HD $23.00

Sheep HD $27.00

Price-

Trigger

Crops 1/

Barley BU $0.34

Corn BU $0.23

Cotton, Upland LBS $0.04

Sorghum BU $0.31

Soybean BU $0.31

Sunflowers LBS $0.01

Wheat (all classes) BU $0.39

Flat-Rate

Crops • alfalfa

• amaranth grain

• buckwheat

• canola

• cotton, ELS

• crambe

(colewort)

• einkorn

• emmer

• flax

• guar

• hemp

• indigo

• industrial rice

• kenaf

• Khorasan

• millet

• mustard

• oats

• peanuts

• quinoa

• rapeseed

• rice

• rice, sweet

• rice, wild

• rye

• safflower

• sesame

• speltz

• sugar beets

• sugarcane

• triticale

Acre $15.00

1/ The payment for price-trigger crops is the greater of the payment calculated based on the

per unit of measure or $15 per acre. See paragraph 284 for the specific calculation.

9-17-20 3-CFAP Amend. 1 Page 2-17

Par. 22


B CFAP 2 Payment Rates (Continued)

The following table provides payment rates for sales commodities.

2019 Sales Range Percent Payment Factor

Up to $49,999 10.6

$50,000-$99,999 9.9

$100,000-$499,999 9.7

$500,000-$999,999 9.0

All sales over $1 million 8.8

23-34 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 2-18

(through 2-50)

Par. 35

Section 2 Eligibility Requirements

35 CFAP 2 Eligibility

A General Eligibility for CFAP 2 Commodities

Specific commodity eligibility policy can be found in:

● Part 4 for Dairy (Milk)

• Part 5 for Eggs and Broilers

● Part 6 for Livestock

• Part 7 for Sales Commodities

• Part 8 for Acreage-Based Crops.

36 Production, Sales, Inventory, and/or Acreage Reporting for CFAP 2 Eligible Commodities

A Reporting Requirements

The requirement to provide production, sales, inventory, and/or acreage certification on

AD-3117 is based on each producer’s nationwide ownership interest in the commodity,

regardless of where the commodity was grown or is stored.

Note: Ownership interest does not mean interest as a landowner. In this context, ownership

interest means as owners of the commodity with both control of and title to the

commodity.

B Documentation

Producers must maintain documentation, as discussed in subparagraph 51 B, to support all

certifications of production, sales, inventory, and/or acreage.

9-17-20 3-CFAP Amend. 1 Page 2-51

Par. 37

37 Payment Eligibility Requirements

A Payment Eligibility

To be considered eligible for CFAP 2 payment, in addition to submitting a completed

AD-3117, persons or legal entities must have filed the following forms for the 2020

production year:

• AD-1026 according to 6-CP (see subparagraph 18 A for AD-1026)

• applicable CCC-902 according to 5-PL

• CCC-941 or CCC-942 for AGI certification according to 5-PL.

Note: 2016, 2017, and 2018 tax years are used to calculate AGI for 2020 CFAP 2. All

required eligibility forms must be filed before an CFAP 2 payment can be issued.

38-49 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 2-52

Par. 50

Part 3 Application Processing and Review for Approval

Section 1 Application Processing

50 Applying for CFAP 2

A Application Submission

Producers will submit 1 application for their entire operation nationwide. The application

may include any or all eligible commodities and may be revised to add 2020 sales or

production, when applicable.

A producer may submit an application using any of the following methods:

• in person, when available

• by mail

• electronically by:

• FAX

• e-mail with a scanned or photocopy of signed AD-3117 attached

• other authorized method (provided by supplemental notice or other guidance) online

at www.farmers.gov

• online application.

Note: Submitting AD-3117 online requires an active Level 2 eAuthentication account.

Individual producers can register for a Level 2 eAuthentication account at

www.eauth.usda.gov. A fillable format of AD-3117 will also be available for

applicants to sign and submit by 1 of the methods in this subparagraph.


http://www.farmers.gov/

http://www.eauth.usda.gov/

Par. 50

50 Applying for CFAP 2 (Continued)

B Signing and Certifying AD-3117

By signing AD-3117, Part I, the individual is:

• applying for a CFAP 2 payment for the producer listed on Part B and if applicable,

members listed in Part H of AD-3117

• certifying all the information provided on AD-3117 is true and correct

• agreeing to:

• be in business of farming at the time of application, except dairy operations

dissolving after enrolled in CFAP 2

• provide all information that is necessary to verify that the information provided on

AD-3117 is accurate

• allow USDA representatives access to all documents and records, including those in

the possession of a third-party such as a warehouse operator, processor or packer

• comply with maximum payment limitation and adjusted gross income provisions

applicable to CFAP 2 by the required forms

• provide to USDA all information required for program participation within

60 calendar days from the date the producer signs this application

• comply with the provisions of the Food Security Act of 1985 that protect highly

erodible land and wetlands

• acknowledging that:

• providing false certification to FSA is cause for disapproval of AD-3117 and is

punishable by imprisonment, fines, and other penalties

• a CFAP 2 payment will only be made with respect to a commodity produced in the

United States and intended to be marketed for commercial production


Par. 50

50 Applying for CFAP 2 (Continued)

C Signature Requirements

A complete AD-3117, including the applicant’s signature must be received no later than

December 11, 2020.

See 1-CM for signature requirements.

D Recording Receipt of AD-3117’s and Accessing CFAP 2 Application

Offices must make every effort to process the AD-3117 in the system and then have the

producer sign the application. If the CFAP 2 system is not available, a manual AD-3117

must be completed.

Note: COC’s are not to approve any AD-3117 until after AD-3117 has been loaded into the

CFAP 2 system.

If a producer submits a signed manual AD-3117 to the County Office, enter the application in

the system. County Office will date stamp AD-3117 upon receipt of AD-3117 signed in

Part I by the producer.

If a producer submits an application to a County Office that is not the producer’s recording

County Office, the receiving County Office will date stamp the signed application and send a

copy by e-mail or FAX to the recording County Office.

See Exhibit 20 for instructions on completing AD-3117.


Par. 51

51 Reviewing and Acting on AD-3117’s

A Redelegation of Authority for AD-3117’s

COC may redelegate authority to CED to approve routine AD-3117’s; however, CED cannot

further redelegate authority to PT.

All adverse actions must go to COC for review.

Important: Approved AD-3117’s are subject to prompt pay interest; therefore, every

effort must be made to complete the payment process as soon as possible for

approved AD-3117’s.

B Reviewing AD-3117’s for Reasonableness

Production, sales, inventories, and/or acreage, as applicable, will be a self-certification by the

producer and is subject to spot check. COC’s may request additional documentation from a

CFAP 2 applicant to support a producer’s certification of eligible commodities. The

following table provides a list of examples of supporting documentation.

Note: If a producer fails to submit additional documentation in response to a request to

substantiate production, sales, and/or inventories, as applicable, of any eligible

commodity on the application, COC will make the applicable COC adjustments on

the application for the commodities and/or disapprove the application, as applicable.

Commodity Source of Production Evidence

Dairy • milk marketing statements for the months of April, May, June, July,

and August 2020

• records documenting milk that was dumped during April, May, June,

July, and August 2020

• other records determined acceptable by COC.

Eggs and

Broilers • egg and broilers marketing statements for 2019

• contracts

• sales receipts


Note: If the applicant was a new producer after December 31, 2019,

provide 2020 documentation.


Par. 51

51 Reviewing and Acting on AD-3117’s (Continued)

B Reviewing AD-3117’s for Reasonableness (Continued)

Commodity Source of Production Evidence

Sales

Commodities • schedule F

• sales receipts

• other sales documents indicating when a commodity was forward

priced

• ledgers of income

• income statements of deposit slips

• register tapes

• invoices for custom harvesting

• records to verify production costs

• contemporaneous measurements

• truck scale tickets

• contemporaneous diaries – determined acceptable by COC


Note: If the applicant was a new producer after December 31, 2019,

provide 2020 documentation.

Livestock Documentation that verifies the number of head claimed as owned

inventory, which includes but is not limited to:

• breeding records

• feeding records

• inventory records

• rendering receipts

• sales receipts

• veterinary records



Par. 51


C Acting on AD-3117’s

The recording county’s COC, or CED if delegated, will act on all completed and signed

AD-3117’s submitted. No action by COC is applicable to Part G, Specialty Crop

Information.

Important: Payments cannot be authorized until DD has approved the CED’s review of

the first five AD-3117’s according to subparagraph 3 C.

D Approving AD-3117’s

Before approving AD-3117’s, COC or CED, if delegated, must ensure that:

• all program eligibility requirements are met

• the person or legal entity applying for CFAP 2 is determined to be according to

subparagraph 15 A

• signature requirements are met according to 1-CM, signed AD-3117 in Part I

• production, sales, and/or inventories as certified and, as applicable, are reasonable

• AD-3117 was received or postmarked by the end of the signup period.

If all program eligibility requirements are met and COC or delegate has determined that the

information on AD-3117 is reasonable and accurate, COC or delegate will approve AD-3117

and thoroughly document approval in the COC minutes.

Notes: Situations may occur when contract approval is not available in the software.

Contract approval is also not allowed “on paper” during these times.

Completing eligibility forms (AD-1026, CCC-902, CCC-941, etc.) are not a condition

of COC, or CED, approving AD-3117. However, these forms must be filed within

60 calendar days of the producer signing AD-3117. Failure to timely provide all

eligibility forms may result in no payment or a reduced payment. County Offices

must immediately update the Business File and Subsidiary record when the eligibility

forms are filed.


Par. 51


E COC Adjusting or Disapproving AD-3117’s

If it is determined that any of the information as certified on AD-3117 is not reasonable or is

questionable, evidence may be requested from the participant according to subparagraph B.

If evidence provided by the participant differs from the information certified, COC’s do have

authority to make adjustments. See subparagraph 3 G on producer responsibilities.

COC will disapprove AD-3117 if any of the following occur:

• program eligibly requirements are not met

• person or legal entity applying for CFAP 2 is determined to not to be an eligible producer

according to subparagraph 15 B

• information on AD-3117 or supporting documentation provided by the participant is not

accurate or reasonable

• evidence that applicant did not have a reported ownership share interest in the eligible

commodity

• signature requirements were not met according to 1-CM, signed AD-3117 in Part I

Note: If AD-3117 was completed but never signed by the producer or someone on

behalf of the producer, take no action on AD-3117. It is not considered filed

unless it is signed.

• AD-3117 was submitted or postmarked after December 11, 2020.

If COC disapproves AD-3117 for any reasons listed, or adjusts AD-3117 for any reason, then

COC must take the following actions:

• adjust or disapprove AD-3117 as applicable

• notify the participant of the adjustment or disapproval

• provide participant applicable appeal rights according to 1-APP

• thoroughly document reasons for the adjustment of disapproval in the COC minutes.


Par. 52

52 Revised AD-3117’s and Signature Requirements

A Revised AD-3117’s

AD-3117’s can be revised after filing and after AD-3117 was approved and paid before the

end of the signup period. The reasons for revision can vary. Some reasons may include:

• production, sales, or inventory reported was incorrect or entered in error

• additional production, sales, or inventory was not reported on original application.

For any revision to an approved and paid AD-3117, thoroughly document the reason for the

revision in the COC minutes and provide the producer a copy of the revised AD-3117.

B Revisions That Require New Producer Signatures and Approval

Any revision to a previously approved and paid AD-3117 that would increase the calculated

payment amount requires a new producer signature and new approval date entered.

C Revisions That Do Not Require New Producer Signature

A revision that adversely affects an application does not require a new producer signature.

Notify the participant in writing of the revision, provide participant applicable appeal rights

according to 1-APP, and thoroughly document reason for the revision in the COC minutes.

If a revision results in less payment acres, CED will issue a reduced payment letter along

with a copy of the revised AD-3117.

Any revised AD-3117 must have a new approval entered.

53-64 (Reserved)


(through 3-22)

Par. 65

Section 2 General Payment Provisions for CFAP 2

65 General Payment Provisions

A Introduction

The CFAP 2 payment process is an automated process that determines:

• whether the producer is eligible to receive payment

• the payment amount that can be sent to NPS for disbursement

• the overpayment amount that will be updated to the Pending Overpayment Report.

B Frequency of Payment Processing

CFAP 2 payments are processed nightly for the following:

• applications for which an approval is updated in the software during the workday

• changes made to the application or eligibility flags that could affect the producer’s

payment or overpayment amount determination.

C Obtaining FSA-325 for Deceased, Disappeared, or Incompetent Producers

Follow 1-CM provisions for persons who have died, disappeared, or been declared

incompetent.

D Administrative Offset

CFAP 2 payments are not subject to administrative offset.

9-17-20 3-CFAP Amend. 1 Page 3-23

Par. 65

65 General Payment Provisions (Continued)

E Assignments and Joint Payments

A producer entitled to an CFAP 2 payment may assign the payment according to 63-FI.

CFAP 2 payments and may be assigned, provided CCC-36 is submitted by the applicant or

made to a joint payee, provided CCC-37 is submitted by the applicant before payment is

made. County Offices will follow 63-FI to process assignments and joint payment

authorizations.

F Bankruptcy

Bankruptcy status does not exclude a producer from requesting CFAP 2 benefits.

Important: Contact the OGC Regional Attorney for guidance on issuing CFAP 2 payments

on all bankruptcy cases.

G Payments Less Than $1

CFAP 2 payment process will issue all payments.

H Payment Due Date

Follow the provisions of 61-FI for issuing interest payments.

I Sequestering CFAP 2 Payments

CFAP 2 payments are not subject to sequestration.

J General Payment Policy

See 9-CM, Part 2 for general payment policy for the following:

• eligible ID types and business types

• payment eligibility

• payment limitation and attribution of payments

• joint operations and entities

• general provisions for overpayments.

9-17-20 3-CFAP Amend. 1 Page 3-24

Par. 66

66 Payment Limitation Provisions

A Payment Eligibility and Limitation Information for CFAP 2 Payments

CFAP 2 has its own per person or legal entity payment limitation separate from other

programs. The per person or legal entity payment limitation for CFAP 2 is provided in

subparagraphs 16 A and B and will be attributed through direct attribution.

As each payment is processed, the available payment limitation for the person or legal entity

will be reduced until:

• all CFAP 2 payments are issued for the person or legal entity

• the maximum payment limitation has been attributed to a person or legal entity.

67 CFAP 2 Subsidiary Eligibility

A Introduction

The payment process reads the web-based eligibility system for the 2020 year to determine

whether a producer or member of a joint operation is eligible to be paid. If the producer or

member is ineligible to be paid, the payment will not be issued or will be reduced, and the

producer or member will be listed on the Nonpayment Report with the applicable message.

B Subsidiary Eligibility

If a producer has multiple invalid subsidiary eligibility conditions, only the highest priority

ineligible condition as provided in subparagraph C will be printed on the Nonpayment

Report.

9-17-20 3-CFAP Amend. 1 Page 3-25

Par. 67

67 CFAP 2 Subsidiary Eligibility (Continued)

B Subsidiary Eligibility (Continued)

The following table provides eligibility provisions that apply to CFAP 2 payments.

Eligibility

Determination/Certification Value

Eligible for

CFAP 2

Payment Exceptions

AD-1026 Certified Yes

Not Filed No

Good Faith

Determination

Yes

COC

Exemption

Yes

Awaiting

Affiliate

Certification

No

Affiliate

Violation

No

Conservation Compliance –

Farm/Tract Eligibility

In Compliance Yes 1/ A partial compliance

value of Yes” will

result in an additional

determination for the

farm.

Partial

Compliance

Yes 1/

In Violation No

No

Association

Yes

Past Violation No

Reinstated Yes

AGI - $900,000 Limitation

Note: See 5-PL for additional

information about AGI

determinations.

Not Filed No 2/ If an IRS determination

has:

• not been returned,

then the payment

process will use the

producer

certification value

• been returned, then

the payment

process will use the

IRS returned value.

3/ If the IRS value is not

processed, then the

payment process will

use the producer

certification value.

Filed CCC-941 Yes 2/

Exempt Yes

Not Met -

Producer

No

Not Processed 3/

Compliant -

Producer

Yes

Compliant -

Less than

3 years

Yes

Not Compliant No

Failed

Verification

No

9-17-20 3-CFAP Amend. 1 Page 3-26

Par. 67

67 CFAP 2 Subsidiary Eligibility (Continued)

B Subsidiary Eligibility (Continued)

Eligibility

Determination/Certification Value

Eligible for

CFAP 2

Payment Exceptions

Adjusted Gross Income – 75% Farm

AGI Rule

Yes Yes

No No

Foreign Person Determination Yes or Not

Applicable

Yes

No or Pending No

Controlled Substance No Violation Yes

Growing No

Trafficking No

Possession No

C Eligibility Conditions Priority

If a person or legal entity has multiple invalid subsidiary eligibility conditions, only the

highest priority ineligible condition will be printed on the Nonpayment Report and Pending

Overpayment Reports. The following table provides the priority of conditions.

Priority Eligibility Provision

1 Conservation Compliance

2 Controlled Substance

3 AD-1026

9-17-20 3-CFAP Amend. 1 Page 3-27

Par. 68

68 CFAP 2 Payments

A Supporting Files for Integrated Payment Processing

The CFAP 2 payment process is a web-based integrated process that uses a wide range of

information and other program determinations and values to determine whether a payment

should be issued, including the amount of gross payment, reductions, and the net payment

amount. For payments to be calculated correctly, all supporting files must be updated

correctly, including all of the following.

Type of

Information

How Information Is

Used for Payment Processing

Source

AD-3117 data The information from AD-3117 is used to complete

the Gross Payment Report for approved

commodities which determines the CFAP 2 Dairy,

CFAP 2 Eggs and/or Broilers, CFAP 2-Livestock,

CFAP 2 Sales Commodities and/or CFAP 2

Acreage-Based Crops gross payment amount for

the producer.

Application

System

Payment

Eligibility

Information

Used to determine whether the producer

(individual, entity, and/or member of a general

partnership or joint operation) is eligible for

payment for which AD-3117 was filed.

Web-Based

Eligibility System

General Name

and Address

Information

Used to determine the producer’s business type,

citizenship status, and general name and address

information.

Business Partner/

SCIMS

Entity and Joint

Operation

Information

Used to determine the following for which

AD-3117 was filed:

• entities

• general partnerships

• joint ventures.

Business File

Available

Payment

Limitation

Used to determine payment limitation availability. Payment

Limitation

System

Financial Related

Information • Calculated payment information is provided to

NPS.

• Determined overpayment amount may be

provided to NRRS.

NPS or NRRS

9-17-20 3-CFAP Amend. 1 Page 3-28

Par. 68

68 CFAP 2 Payments (Continued)

B Prerequisites for Payment

The following table details the actions that must be performed or verified as having been

completed to properly issue payments. COC, CED, or designee will ensure that the actions

are completed.

Step Action

1 AD-3117 has been approved and the approval date has been recorded in the system.

2 AD-1026 is on file for the applicable year for those seeking payment and the

eligibility information is recorded in the web-based eligibility system. See 6-CP and

3-PL (Rev. 2).

3 CCC-902 is on file and a determination made, as is applicable according to 5-PL for

the applicable year for persons and legal entities.

4 CCC-941, and CCC-942 if applicable, is on file for the applicable year for persons

and legal entities and the certification information is recorded in the web-based

eligibility system. See 5-PL and 3-PL (Rev. 2).

5 All other eligibility determinations have been updated according to the

determinations made by COC for persons and legal entities. See 5-PL.

6 Joint operation and entity ownership structure information is updated in Business

File for the applicable year. See 3-PL (Rev. 2).

7 Assignments and joint payees have been updated in NPS if CCC-36, CCC-37, or

both were filed for CFAP 2. See 63-FI.

8 SF-3881 has been received and recorded in financial applications, or a hardship

waiver is on file. See 1-FI.

9-17-20 3-CFAP Amend. 1 Page 3-29

Par. 69

69 CFAP 2 Payment Reports

A Displaying or Printing CFAP 2 Payment Reports

CFAP 2 Payment Reports are available to provide information about each payment or

nonpayment. Most of the payment reports have information that is common between

program areas. Information about these reports is in 9-CM. The CFAP 2 Payment History

Report – Detail has program-specific data so information for this report is in this handbook.

CFAP 2 Payment Report information is available according to the following.

Report Name Type of Data Reference

Submitted Payments Report Live 9-CM, paragraph 63

Submitted Overpayments Report Live 9-CM, paragraph 64

Pending Overpayment Report

Note: The Pending Overpayment Report

is accessed through the Pending

Overpayment Summary Report

according to 9-CM, paragraph 64.5.

Live 9-CM, paragraph 65

Nonpayment/Reduction Report Live 9-CM, paragraph 66

Insufficient Funds Report Live 9-CM, paragraph 67

Payments Computed to Zero Report Live 9-CM, paragraph 68

Payment History Report – Summary Report Database 9-CM, paragraph 69

Payment History Report – Detail Report Database 9-CM, paragraph 70

Note: See 9-CM for complete instructions on accessing the Common Payment Report

System.

70 Recording CFAP 2 Payments

A Recording Payments

Recording State and county for the producer is to complete the CFAP 2 payment.

Note: The recording State and county for a producer is identified in the Subsidiary Eligibility

System.

71-84 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 3-30

Par. 85

Part 4 Dairy


85 Overview

A Introduction

CFAP 2 provides financial assistance to dairy operations because of marketing channel

disruption from the coronavirus pandemic for 2nd, 3rd, and 4th quarters of calendar year 2020.

To compensate dairy operations for losses, CFAP 2 will use the actual milk production from

April 1 to August 31, 2020, and will use the daily average of those months to estimate the

milk production for September 1, 2020, to December 31, 2020, as the basis to determine

payments.

B General Information

For dairy producers, payments using funding from CCC will be determined by the addition

of producer’s actual milk production from April 1, 2020, to August 31, 2020, and the

estimated milk production for September 1, 2020, to December 31, 2020. The total of actual

and estimated milk production will be multiplied by $0.012 per pound.

86-95 (Reserved)


(through 4-30)

Par. 96


96 CFAP 2 Dairy Eligibility

A Eligible Dairy Operations

Dairy operations who commercially market milk from bovine in the United States at the time

of enrollment are eligible for CFAP 2.

Note: Dairy operations that are no longer producing milk before enrollment are not eligible

for CFAP 2.

B Eligible Milk Production

CFAP 2 actual milk production is:

• milk commercially marketed for the months of April, May, June, July, and August 2020

• dumped milk during the same months not recorded on marketing statements.

CFAP 2 estimated milk production is:

• milk expected to be commercially marketed for the months of September, October,

November, and December 2020

• determined by the daily average of CFAP 2 actual milk production multiplied by the

number of commercially, marketing days in September through December 2020.

Note: CFAP 2 eligibility is not affected because of participation in Dairy Margin Coverage,

Dairy Revenue Protection, Livestock Gross Margin, and other dairy revenue

insurance programs.

C Dissolved Dairy Operations

CFAP 2 requires dairy operations to be producing milk at time of enrollment. Consequently,

County Offices will recommend production information not be entered for previously

dissolved dairy operations.

If a previously dissolved dairy operation production information is entered on AD-3117 and

Part C, Dairy is the only enrollment section completed, COC will disapprove the CFAP 2

application.

9-17-20 3-CFAP Amend. 1 Page 4-31

Par. 96

96 CFAP 2 Dairy Eligibility (Continued)

C Dissolved Dairy Operations (Continued)

If a previously dissolved dairy operation production information is entered on AD-3117 and

other parts of the CFAP application are completed, COC will adjust the pounds in COC

Adjusted Total Production in item 8 to zero.

Dairy operations that dissolve after enrollment in CFAP 2 are eligible for a prorated payment

based on their applicable pounds of April 1, 2020, through August 31, 2020, milk production

and estimated milk production according to the number of days producing milk after

September 1, 2020.

Dissolved dairy operations are required to report on AD-3117 the date the dairy operation

stopped commercially, marketed milk in item 10A.

Note: Dairy operations that dissolve after enrolling in CFAP 2 and have reported the

dissolution date will be required to refund any unearned payment according to the

days the operation was producing milk during September through December.

D Joint Venture Dairy Operations

Dairy operations that operate as a joint venture without a TIN and applying for CFAP 2 will

require the members of the operation to apply as individuals for their applicable milk

production determined by their ownership level. In working with joint venture dairy

operations, County Offices will provide guidance and direction to ensure that AD-3117 is

completed correctly.

E Seasonal Dairy Operations

Dairy operations that operate seasonally are eligible for CFAP 2 according to

subparagraph B.

Seasonal dairy operations that stop producing milk after enrollment in CFAP 2 are eligible

for a prorated payment based on their applicable pounds of April 1, 2020, through

August 31, 2020, milk production and estimated milk production according to the number of

days producing milk after September 1, 2020.

Seasonal dairy operations are required to report on AD-3117 the date the dairy operation

stopped commercially, marketed milk in item 10A.

Note: Seasonal dairy operations that stop producing milk after enrolling in CFAP 2 and

have reported the production stop date will be required to refund any unearned

payment according to the days the operation was producing milk in September

through December.

9-17-20 3-CFAP Amend. 1 Page 4-32

Par. 97

97 Reporting Dairy Production

A Requirement

Dairy operations will self-certify their actual milk production for the months of April, May,

June, July, and August 2020.

The following documents are recommended to assist producers in providing accurate

information:

• milk marketing statements for the months of April, May, June, July, and August 2020

• records of dumped milk not listed on milk marketing statements for the same months.

Note: These documents are not required at signup because the application is a

self-certification.

B AD-3117, Part C

Following is an example of AD-3117, Part C, Dairy Production.

Note: Each dairy operation must report the total of actual milk production in pounds for the

months of April, May, June, July, and August in item 7. See Exhibit 20 for further

AD-3117 instructions.

C Processing AD-3117 for Dissolved and Seasonal Dairy Operations

CFAP 2 software can process applications for dissolved and seasonal dairy operations.

County Offices will use AD-3117, which requires the date a dairy operation stopped

producing milk for a dissolved or seasonal dairy operation. The software will determine

eligible payments for dissolutions occurring from September 1, 2020, through

December 31, 2020. Dissolved and seasonal dairy operations will be paid under CCC

funding according to the number of days producing milk after September 1, 2020.

In the CFAP 2 software, County Offices will enter the date the dairy operation stopped

producing milk in item 10A, which is the dissolution date.

Note: The system will not accept a future date. COC will have the capability to adjust the

dairy operation dissolution date if necessary.

98-110 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 4-33

(through 4-60)

Par. 111

Section 3 Payments

111 Dairy Payment Components

A Payment Rates

CFAP dairy payments are funded by CCC and determined from actual (April through

August) milk production and estimated (September through December) milk production in

total multiplied by $0.012 per pound.

B CFAP Dairy Payment Calculation

CFAP payment for eligible dairy will be the sum of the results of the following

2 calculations.

2020 Actual Milk Production 2020 Estimated Milk Production

For each eligible producer, payment is

calculated by multiplying the actual pounds of

milk production provided by producer for the

months April through August 2020 multiplied

by $0.012.

Note: Dairy operations must be

commercially, marketing milk at the

time of application to be eligible for

actual milk production payment.

For each eligible producer, estimated

production is first calculated by

determining a daily average for actual

April through August milk production

(pounds of actual production divided by

153 calendar days in April through

August) and multiplying by 122 (days of

milk production for September through

December 2020) and the payment

calculated by multiplying by $0.012.

9-17-20 3-CFAP Amend. 1 Page 4-61

Par. 111

111 Dairy Payment Components (Continued)

C CFAP Dairy Application and Payment Examples

Example 1 – Easy Dairy LLC

Easy Dairy LLC is a 100-cow family dairy farm and is interested in applying for CFAP 2.

Easy Dairy LLC completes AD-3117 online using the total of monthly production from their

milk marketing statements for April, May, June, July, and August 2020. In this example,

Easy Dairy LLC did not dump any milk during this time. Once the actual monthly milk

production is added to AD-3117, and signed by the producer, the application is complete for

CFAP.

Milk production is as follows:

• April - 160,000 pounds

• May - 170,000 pounds

• June - 180,000 pounds

• July - 155,000 pounds

• August - 160,000 pounds.

825,000 actual pounds

The estimated milk production is calculated:

825,000 pounds divided by 153 (number of days in April through August) =

5,392 average pounds per day.

5,392 multiplied by 122 (number of days in September through December) =

657,824 estimated pounds.

Total Pounds Calculation

Actual pounds - 825,000

Estimated Pounds - 657,824

Total Pounds - 1,482,824

The payment calculation is as follows:

1,482,824 pounds multiplied by $0.012

Easy Dairy LLC Total Payment - $17,793.88

9-17-20 3-CFAP Amend. 1 Page 4-62

Par. 111


C CFAP Dairy Application and Payment Examples (Continued)

Example 2 – McDonald Family Dairy Farm Joint Venture

McDonald Family Dairy Farm Joint Venture is a 250-cow dairy operation, that operates

without a TIN, with Old McDonald owning 90 percent and Sam McDonald owning

10 percent of the dairy operation.

For McDonald Family Dairy Farm Joint Venture to sign up for CFAP 2, Old McDonald and

Sam McDonald must determine their eligible pounds of milk production for April, May,

June, July, and August, based on their ownership share and individually apply on separate

AD-3117’s.

McDonald Family Dairy Farm Joint Venture did not dump any milk.


• April - 425,000 pounds

• May - 430,000 pounds

• June - 450,000 pounds

• July - 424,000 pounds

• August - 425,000 pounds.

2,154,000 actual pounds


2,154,000 pounds divided by 153 (number of days in April through August) =



1,717,5164 estimated pounds.


Actual pounds - 2,154,000

Estimated Pounds - 1,717,516


9-17-20 3-CFAP Amend. 1 Page 4-63

Par. 111



Example 2 – McDonald Family Dairy Farm Joint Venture

Eligible pounds for joint venture members are as follows:

• Old McDonald – 3,871,516 x 90 percent = 3,484,364 lbs.

• Sam McDonald – 3,871,516 x 10 percent = 387,152 lbs.


• Old McDonald’s Payment Calculation:

3,484,364 lbs. x $0.012= $41,812.37

Old McDonald’s Total Payment - $41,812.37

• Sam McDonald’s Payment Calculation:

387,152 lbs. x $0.012= $4,645.82

Sam McDonald’s Total Payment - $4,645.82

9-17-20 3-CFAP Amend. 1 Page 4-64

Par. 111



Example 3 - Sky’s the Limit Dairy

Sky’s the Limit Dairy is a large dairy operation with an annual milk production of

approximately 100 million pounds.


• April - 8,150,000 pounds

• May - 8,250,000 pounds

• June - 8,300,000 pounds

• July - 8,100,000 pounds

• August - 8,150,000 pounds.

Total – 40,950,000 pounds


40,950,000 pounds divided by 153 (number of days in April through August) =



32,652,934 estimated pounds.


Actual pounds - 40,950,000

Estimated Pounds - 32,652,934



73,602,934 pounds x $0.012 = $883,235.21

Sky’s the Limit Total Payment - $883,235.21

Note: The $250,000 payment limit applies; however, Sky’s the Limit Dairy may earn up to

$750,000 of limit if 3 persons holding an ownership interest in the organizational

structure provides at least 400 hours of active personal labor, active personal

management, or a combination thereof according to subparagraph 16 B.

112-124 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 4-65

Par. 125

Part 5 Eggs and Broilers


125 Overview

A Introduction

CFAP 2 provides financial assistance to eligible egg and broiler producers who face market

disruptions, low prices, and significant marketing costs associated with the COVID-19

pandemic. Egg and broiler producers have experienced 5 percent or greater price declines in

comparison of the average prices for the week of January 13-17, 2020, and the average prices

for the week of July 27-31, 2020. To compensate egg and broiler producers for losses,

CFAP 2 will use the eligible broiler and egg (shell, dried, frozen, and/or liquid) 2019

production, as the basis to determine payments.


CFAP 2 payments will be made to eligible producers of broilers and shell, dried, liquid, and

frozen eggs using national payment rates that have been determined based on relative price

declines. Payments will be determined by multiplying the eligible producer’s 2019

commodity-specific production by 75 percent by the eligible commodity’s national payment

rate in the table in subparagraph 22 B.

126-135 (Reserved)


(through 5-30)

Par. 136


136 Producer, Egg, and Broiler Eligibility

A Eligible Egg and Broiler Producers

An eligible producer is a person or legal entity sharing in the risk of producing a commodity.

The term does not include contract growers. Producers who are not in the business of

farming at the time of application are not considered eligible producers.

Eligible egg and broiler producers who commercially market broilers and shell, dried, frozen,

or liquid eggs from chickens in the United States are eligible for CFAP 2.

Egg producers with a risk in the egg sales may be eligible for CFAP 2 payments. COC must

determine who has risk.

Egg producers with a guarantee price on their egg production are not eligible for CFAP 2.

Broiler producers must be independent growers.

B Eligible Egg and Broiler Production

CFAP 2 eligible egg production is shell, dried, frozen, and/or liquid eggs produced for

the calendar year of 2019.

If the eggs are sold/processed and do not already have a guarantee payment to the

producer, then they are eligible for CFAP.

CFAP 2 eligible broiler production is broilers, which includes any chicken that has been

commercially produced for meat purposes that has left the farm for slaughter, and not

used for laying or breeding purposes for the calendar year of 2019.

New egg or broiler producers who began farming in 2020 and did not have any

production in 2019, will use their actual 2020 broiler and/or egg production.

9-17-20 3-CFAP Amend. 1 Page 5-31

Par. 137

137 Producer Reporting Requirements for Egg and Broiler Production

A Requirements for Reporting Egg Production

Egg producers will self-certify to their dried, liquid, and/or frozen egg production, in pounds,

and for shell eggs in dozens, for the 2019 calendar year.

If the producer sells frozen and/or liquid eggs still in the shell, the following formula can be

used to convert to pounds:

Number of pounds = Number of cases (30 dozen eggs in a case) x 48 pounds x .83

If the producer provides eggs in dozens instead of cases, use the following formula:

Number of pounds = Number of dozen eggs x 1.6 pounds x .83

Notes: The standard weight for a case of 30 dozen eggs is 48 pounds and 83 percent of the

shell egg is liquid egg.

If the yolks and whites are separated and produced as different egg types, e.g. yolks

are frozen and the whites are liquid, the following percentages should be applied in

the formula in this subparagraph instead of 83 percent, for either white or yolk:

• percent of the shell egg that is white = 57.6 percent

• percent of the shell egg that is yolk = 25.4 percent.

Additionally, a conversion can be used to convert pounds of liquid/frozen eggs to

pounds of dried eggs.

1 pound of dried eggs = 2.25 pounds of liquid/frozen eggs

New producers will report their actual 2020 production in pounds or dozens.

B Requirements for Reporting Broiler Production

The information required from producers to apply for CFAP 2 will be a self-certification by

the producer or authorized representative. Eligible broiler producers must self-certify their

commercially produced broiler production, in number of head marketed for slaughter for the

2019 calendar year.

Note: For broiler operations that have multiple owners, each individual producer or entity

must ensure that the self-certification only represents their individual share of eligible

broilers. AD-3117 does not include a data entry for a share percentage.

New producers that began broiler production in 2020 will report their actual 2020 production

to date, at the time of application, in total number of head produced and marketed for

slaughter.

9-17-20 3-CFAP Amend. 1 Page 5-32

Par. 137

137 Producer Reporting Requirements for Egg and Broiler Production (Continued)

C AD-3117, Part D

Following is an example of AD-3117, Part D, Eggs/Broiler Production Information.

Eligible egg and broiler operations must report the following:

• 2019 total production by head for broilers

• 2019 total production by pound for dried eggs

• 2019 total production by pound for frozen eggs

• 2019 total production by pound for liquid eggs

• 2019 total production by dozen for shell eggs.

Note: See subparagraphs A and B for new 2020 broiler and egg producers with no 2019

production.

D COC Adjustments on AD-3117

COC’s have the authority to adjust the “Adjusted 2019 Total Production” in AD-3117,

item 14:

• if the production is determined to be unreasonable or inaccurate

• to reflect the actual production based on submitted documentation, when determined

necessary.

Note: See subparagraph 51 E for COC adjustments.

138-147 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 5-33

(through 5-60)

Par. 148

Section 3 Payments

148 Broiler and Egg Payment Calculation

A Payment Rate and Calculation for Broilers

A payment for broilers will be equal to 75 percent of the producer’s total 2019 broiler

production multiplied by a payment rate of $1.01 per bird (head).

An eligible broiler producer who began farming in 2020 and had no production in 2019 will

use the same payment calculation, except the payment will be based on 75 percent of the

producer’s actual 2020 broiler production as of the date the producer submits an application

for payment.

B Payment Rate and Calculation for Shell Eggs

A payment for shell eggs will be equal to 75 percent of the producer’s 2019 shell egg

production multiplied by a payment rate of $0.05 per dozen.

Payments for shell egg producers who began farming in 2020 and had no production in 2019

will be calculated using the same payment calculation, except the payment will be based on

the producer’s actual 2020 shell egg production as of the date the producer submits an

application for payment.

C Payment Rate and Calculation for Dried Eggs

A payment for dried eggs will be equal to 75 percent of the producer’s 2019 dried egg

production multiplied by a payment rate of $0.14 per pound.

Payments for dried egg producers who began farming in 2020 and had no production in 2019

will be calculated using the same payment calculation, except the payment will be based on

the producer’s actual 2020 dried egg production as of the date the producer submits an

application for payment.

D Payment Rate and Calculation for Frozen Eggs

A payment for frozen eggs will be equal to 75 percent of the producer’s 2019 frozen egg


Payments for frozen egg producers who began farming in 2020 and had no production in

2019 will be calculated using the same payment calculation, except the payment will be

based on the producer’s actual 2020 frozen egg production as of the date the producer

submits an application for payment.

9-17-20 3-CFAP Amend. 1 Page 5-61

Par. 148

148 Broiler and Egg Payment Calculation (Continued)

E Payment Rate and Calculation for Liquid Eggs

A payment for liquid eggs will be equal to 75 percent of the producer’s 2019 liquid egg


Payments for liquid egg producers who began farming in 2020 and had no production in

2019 will be calculated using the same payment calculation, except the payment will be

based on the producer’s actual 2020 liquid egg production as of the date the producer submits

an application for payment.

149 CFAP 2 Broiler and Egg Payment Calculation Examples

A Egg and Broiler Application and Payment Examples

Example 1 – EZ2 Eggs LLC

EZ2 Eggs LLC is a shell egg operation with around 1 million layers and is interested in

applying for CFAP. EZ2 Eggs LLC completes AD-3117 using 2019 production. EZ2 Eggs

LLC started its operation in mid-April of 2019, because EZ2 Eggs LLC operated in 2019 it is

not considered a new producer and will be paid according to its 2019 production. Once the

production is added to AD-3117, and signed by the producer, the application is complete for

CFAP.

Egg production is as follows:

2019 Egg Production = 17,332,390 dozen


17,332,390 dozen times 75 percent times $0.05

EZ2 Eggs LLC Total Payment - $649,964.63

Note: The $250,000 payment limit applies; however, EZ2 Eggs LLC may earn up to

$750,000 if 3 persons holding an ownership interest in the organizational structure

provide at least 400 hours of active personal labor, active personal management, or a

combination thereof according to subparagraph 16 B.

9-17-20 3-CFAP Amend. 1 Page 5-62

Par. 149

149 CFAP 2 Broiler and Egg Payment Calculation Examples (Continued)

A Egg and Broiler Application and Payment Examples (Continued)

Example 2 – Breaker Eggs Inc.

Breaker Eggs Inc. is a small breaker egg operation that sells its eggs to be broken by a

processor into liquid eggs. Breaker Eggs Inc. produced 162,222 cases of eggs in 2019 and

sent them to a processor to be broken.

Egg production is as follows:

• 2019 Egg Production = 162,222 cases

• 162,222 cases times 48 pounds times 83 percent = 6,462,924.48 pounds.


6,462,924.48 pounds times 75 percent times $0.04

Breaker Eggs Inc. Total Payment - $193,887.73

Example 3 – Chicken USA LLC

Chicken USA LLC is a small independent broiler operation that grows and markets broilers

to a processor affiliated with a small restaurant chain. Chicken USA produced 125,300 birds

for slaughter in 2019.

Chicken USA certified their 2019 broiler production as 125,300 head.

The CFAP 2 gross payment calculation for Chicken USA is as follows:

125,300 head times 75 percent times $1.01

Chicken USA LLC Total Gross CFAP 2 Payment - $94,915

150-164 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 5-63

Par. 165

Part 6 Livestock


165 Overview

A Purpose

CFAP 2 provides financial assistance to eligible livestock producers who face continuing

market disruptions, low prices, and significant marketing costs associated with the

COVID-19 pandemic. Producers of eligible livestock commodities that have suffered a

5 percent or greater price decline over a specified time period because of COVID-19 and face

additional significant marketing costs for current inventories may be eligible for

compensation.

This part is dedicated to livestock that have been determined eligible based on market price

declines, specifically in beef cattle, hogs and pigs, and sheep, excluding breeding stock, that

occurred between mid-January 2020, and late-July 2020.


Livestock that realized a 5-percent-or-greater market price decline between the average for

the week of January 13-17, 2020, relative to the average for the week of July 27-31, 2020,

have been determined eligible for CFAP 2. National payment rates have been determined

based on those price declines. For eligible livestock, payments using CCC funds are based

on an eligible producer’s highest owned inventory of eligible livestock (excluding breeding

stock) on a date selected by the eligible producer from April 16, 2020, through

August 31, 2020, multiplied by the national payment rate per head.

166-175 (Reserved)


(through 6-20)

Par. 176


176 Producer and Livestock Eligibility

A Eligible Livestock Producers

An eligible producer is a person or legal entity who shares in the risk of producing a

commodity. The term does not include contract growers. Producers who are not in the

business of farming at the time of application are not considered eligible producers.

B Eligible Livestock

Commodities designated as eligible for payments under CFAP 2 are agricultural

commodities produced in the United States and intended to be marketed for commercial

production.

Eligible livestock based on market price declines for CFAP 2 are:

• beef cattle

• hogs/pigs

• sheep.

Ineligible livestock are:

• breeding stock, including breeding livestock removed from the livestock breeding

operation (culls)

• livestock produced by contract growers

• livestock not meeting the definition of eligible commodity for CFAP.

9-17-20 3-CFAP Amend. 1 Page 6-21

Par. 177

177 Inventory Reporting Requirements for Livestock

A Producer Reporting Requirements

The information required from producers to apply for CFAP 2 will be a self-certification by

the producer or authorized representative. Livestock producers must self-certify the highest

owned inventory on a date selected by the eligible producer from April 16, 2020, through

August 31, 2020.

Note: For livestock operations that have multiple owners, each individual producer or entity

must ensure that the self-certification only represents their individual share of eligible

livestock. AD-3117 does not include a data entry for a share percentage.

Example: DJB Cattle Co. (DJB) and River Cattle Co. (River) own livestock together. DJB

has 50 percent ownership and River has 50 percent ownership of 75 market hogs

on a date from April 16, 2020, through August 31, 2020. DJB and River will each

have a separate CFAP 2 application. DJB and River agree how the number of

animals will be reported to represent each of their livestock interest on each

CFAP 2 application, since 75 “Hogs/Pigs” cannot be split equally and only whole

numbers can be entered in AD-3117, Part E, item 16. DJB agrees to certify their

highest owned inventory of “Hogs/Pigs” is 37 head and River agrees to certify

their highest owned inventory “Hogs/Pigs” is 38 head.

If supporting documentation is requested by COC to verify the information specified on the

application, the producer must provide records that substantiate the reported information.

Examples of supporting documentation the producer could provide to use as evidence for

verification purposes of reported livestock inventory includes, but not limited to, copies of

livestock purchase receipts, veterinarian records, records to verify livestock production costs,

or contemporaneous diaries that are determined acceptable by COC. See paragraph 4 for

erroneous information and misrepresentation.

9-17-20 3-CFAP Amend. 1 Page 6-22

Par. 177

177 Inventory Reporting Requirements for Livestock (Continued)

B AD-3117, Part E

AD-3117, Part E is the designated section for data entry for livestock (excluding breeding

stock) information. The following is an example of AD-3117, Part E.

Note: AD-3117 has been pre-filled with the eligible livestock commodities (“Cattle”,

“Hogs/Pigs”, and “Sheep”) that have been determined eligible based on a 5 percent

or greater market price decline.

C COC Adjustments on AD-3117

COC’s have the authority to adjust the “Adjusted Inventory” in AD-3117, item 16:

• if the quantity is determined to be unreasonable or inaccurate

• to reflect the actual inventory based upon submitted documentation.

Note: See subparagraph 51 E for COC adjustments.

178-187 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 6-23

(through 6-44)

Par. 188

Section 3 Payments

188 CFAP 2 Livestock Payment Computations

A Livestock Payment Rates

CFAP 2 payment rates for eligible livestock are determined by the Secretary and are listed in

the following table.

Eligible Livestock (Excluding

Breeding Stock) Unit of Measure

CFAP 2

Payment Rate

Cattle Head $55.00

Hogs and Pigs Head $23.00

Sheep Head $27.00

Note: CFAP 2 payment rates were determined taking into consideration the CCC-funded

payment rates established for CFAP.

B Livestock Payment Calculation

CFAP 2 payment for eligible livestock will be result of the following calculation:

For each eligible producer, payment is calculated by multiplying the highest owned inventory

of eligible livestock (excluding breeding stock) on a date selected by the producer from

April 16, 2020, to August 31, 2020, by the CFAP 2 payment rate per head.

9-17-20 3-CFAP Amend. 1 Page 6-45

Par. 188

188 CFAP 2 Livestock Payment Computations (Continued)

C Livestock Application and Payment Examples

Example 1 – Cow Calf Operation

Producer DJB Cattle Co (DJB) is a cow/calf operation that had owned livestock inventory on

a date from April 16, 2020, and August 31, 2020, of 480 head of cow/calf pairs, 18 herd

bulls, and 75 replacement heifers. Breeding stock, as defined as cows and bulls for cattle, are

ineligible for CFAP 2. For CFAP 2 purposes, DJB certified that their highest owned cattle

inventory (excluding breeding stock) on a date from April 16, 2020, and August 31, 2020,

was 555 head of cattle (480 calves and 75 replacement heifers).

AD-3117, Part E would be completed as follows.

If all eligibility requirements are met, the estimated gross CFAP 2 payment calculation,

before reductions, payment factors, as applicable, would be the following.

9-17-20 3-CFAP Amend. 1 Page 6-46

Unit of

Measure

Highest Owned

Inventory April 16 -

August 31, 2020

CFAP 2

Payment

Rate

Estimated

Calculated Pmt

CATTLE Head 555 55.00$ 30,525$

HOGS/PIGS Head 0 23.00$ -$

SHEEP Head 0 27.00$ -$

Total Estimated Gross CFAP 2 Payment Before Any Reductions (PL, etc.) 30,525$

Livestock

(Excluding Breeding Stock)

CFAP 2 PAYMENT CALCULATION

480 calves + 75 replacement heifers = 555 head

Par. 188


C Livestock Application and Payment Examples (Continued)

Example 2 – Feedlot Operation

Producer 5R Feeders is a cattle feeder operation that had owned livestock inventory on a date

from April 16, 2020, and August 31, 2020, of 3,500 head of feeder calves, 500 head of fat

cattle, and 10 head of horses. For CFAP 2 purposes, 5R certified that their highest owned

cattle inventory on a date from April 16, 2020, and August 31, 2020, was 4,000 head of

cattle.

Note: Horses (equine) are not eligible livestock for CFAP 2.



before reductions, if applicable, would be the following.

9-17-20 3-CFAP Amend. 1 Page 6-47

Unit of

Measure

Highest Owned


August 31, 2020

CFAP 2

Payment

Rate

Estimated

Calculated Pmt

CATTLE Head 4000 55.00$ 220,000$

HOGS/PIGS Head 0 23.00$ -$

SHEEP Head 0 27.00$ -$


Livestock



Par. 188



Example 3 – Diversified Livestock Operation

Producer Cooper Floyd is a diversified livestock operator. Floyd had owned livestock

inventory on a date from April 16, 2020, and August 31, 2020, of:

• 10 dairy cows (ineligible livestock)

• 45 beef cows (ineligible livestock)

• 40 beef calves

• 2 bulls (ineligible livestock)

• 20 ewes (ineligible livestock)

• 40 lambs

• 2 rams (ineligible livestock)

• 25 sows (ineligible livestock)

• 1 boar (ineligible livestock)

• 20 market pigs

• 2 horses (ineligible livestock).

Floyd certified that for CFAP 2 purposes, his highest owned inventories on a date from

April 16, 2020, and August 31, 2020, were:

• 40 head of cattle

• 20 head of hogs/pigs

• 40 head of sheep.


9-17-20 3-CFAP Amend. 1 Page 6-48

Par. 188




before reductions, if applicable, would be the following.

189-210 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 6-49

Unit of

Measure

Highest Owned


August 31, 2020

CFAP 2

Payment

Rate

Estimated

Calculated Pmt

CATTLE Head 40 55.00$ 2,200$

HOGS/PIGS Head 20 23.00$ 460$

SHEEP Head 40 27.00$ 1,080$


Livestock



Par. 211

Part 7 Sales Commodities


211 Overview

A Purpose

CFAP 2 will provide producers of eligible 2020 sales commodities who face continuing

market disruptions, low farm-level prices, and significant marketing costs with financial

assistance to provide the ability to absorb increased marketing costs associated with the

COVID-19 outbreak.

These additional significant marketing costs are associated with:

• declines in demand

• surplus production

• disruptions to shipping patterns

• the orderly marketing of commodities.


CFAP 2 payments will be issued using CCC funds for:

• aquaculture, including mollusks

• crops not identified as price-trigger or flat-rate

• nursery and/or floriculture crops

• specifically defined miscellaneous crops

• specifically identified livestock, not including breeding stock.

CFAP 2 payments for tobacco will be issued using CARES Act funds.

212-220 (Reserved)


(through 7-20)

Par. 221


221 General Sales Commodities Eligibility

A Eligible Commodities

Eligible commodities include commercially produced:

• aquaculture, including mollusks

• specialty crops:

• all CFAP 1 specialty crops as discussed in 1-CFAP, Part 8

• crops identified by AMS as specialty crops

Note: A complete list of AMS specialty crops can be found at https://www.ams.usda.gov/sites/default/files/media/USDASpecialtyCropDefinition.pdf.

• nursery crops and floriculture

• other livestock commercially raised for food, fiber, fur, or feathers including:

• alpacas

• bison, buffalo, beefalo

• deer

• ducks

• elk

• emus

• geese

• goats

• guinea pigs

• llamas

• ostrich

• pheasants

• quail

• rabbits

• reindeer

• turkeys

9-17-20 3-CFAP Amend. 1 Page 7-21

https://www.ams.usda.gov/sites/default/files/media/USDASpecialtyCropDefinition.pdf

Par. 221

221 General Sales Commodities Eligibility (Continued)

A Eligible Commodities (Continued)

• miscellaneous commodities including:

• goat milk

• mink, including pelts

• mohair

• Christmas trees

• wool

• tobacco.

B Ineligible Commodities

All breeding stock, equine, companion or comfort animals/pets, commodities produced by

contract growers, and livestock raised for hunting or game purposes are ineligible for

CFAP 2.

222 Sales Certification

A Requirement

Producers of eligible sales commodities must certify their 2019 sales for those commodities.

The 2019 sales must be determined reasonable by COC.

Eligible sales include only sales of raw commodities grown by the producer. Any portion of

sales derived from adding value to the commodity, such as processing and packaging, and

from sales of products purchased for resale must not be included in the amount of sales.

Note: COC may require documentation to support sales.

Example: Producer A farmed 150 acres of apples in 2019 where they packed and shipped

raw apples producing a revenue of $120,000. Producer A also processed some of

the apples harvested from the 150 acres into apple juice, bottled it, and sold it to

his local markets producing a revenue of $90,000. Producer A will certify a total

of $120,000 sales for 2019 because sales from adding value to the apples by

processing them into apple juice cannot be included.

9-17-20 3-CFAP Amend. 1 Page 7-22

Par. 222

222 Sales Certification (Continued)

B New Producers

Producers who began farming a category of sales commodity in 2020 and had no 2019 sales

will self-certify their actual 2020 sales, at the time of application, in lieu of 2019 sales. The

producer’s actual 2020 sales must be determined reasonable by COC.

Eligible sales include only sales of raw commodities grown by the producer. Any portion of

sales derived from adding value to the commodity, such as processing and packaging, and

from sales of products purchased for resale must not be included in the amount of sales.

Note: COC may require documentation to support sales.

Example 1: Producer A grew 100 acres of blueberries as an individual with 100 percent

share in 2019 with total sales of $250,000. In 2020, Producer A’s spouse,

Producer B, began farming as a new producer, Producer A and Producer B

grew 100 acres of blueberries and now share 50/50 with total sales of

$200,000. Producer A will certify to their 2019 total sales of $250,000 and

Producer B will certify to $100,000, their 50 percent share of the 2020 sales.

Example 2: Producer C grew 120 acres of watermelons in 2018, but did not plant anything

in 2019. In 2020, Producer C grew 120 acres of watermelons and had total

sales of $320,000. Because Producer C farmed before 2020, their 2019 sales

will be $0.

Example 3: Producer D historically raised and sold turkeys commercially, with no other

agricultural activity. In 2020, Producer D grew 50 acres of pumpkins.

Producer D will certify 2019 sales for the turkeys as “Other Livestock” and

certify 2020 sales for pumpkins.

C AD-3117, Part F

Following is an example of AD-3117, Part F, Sales Commodities Information.

9-17-20 3-CFAP Amend. 1 Page 7-23

Par. 222

222 Sales Certification (Continued)

D COC Adjustments

COC may adjust the “Total 2019 Sales”:

• if the 2019 total commodity sales are determined to be unreasonable or inaccurate

• to reflect the actual 2019 total commodity sales based on documentation, when deemed

necessary by COC

• to reflect the actual 2020 total commodity sales for new producers based on

documentation, when deemed necessary by COC.

223-234 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 7-24

(through 7-44)

Par. 235

Section 3 Payments

235 Sales Commodities Payment Components

A Basis for Payment

Producers are paid based on five payment gradations associated with their 2019 sales.

The sales range and payment factor in the following table will be used to calculate payments.

2019 Sales Range Payment Factor

Up to $49,999 10.6%

$50,000-$99,999 9.9%

$100,000-$499,999 9.7%

$500,000-$999,999 9.0%

All sales over $1 million 8.8%

The calculation is made for all commodities for which the payment is based on CCC funds

and a separate calculation is made for tobacco.

B Payment Calculation

Payments for sales commodities will be equal to the sum of the result of the amount of the

producer’s eligible 2019 sales (AD-3117, item 19) within each specified range multiplied by

the payment rate for that range from the table in subparagraph A.

Payment Calculation Examples:

Farmer 2019 Sales

Portion of Total Payment Falling Into Each Sales Range

Total Gross

Payment

<$50,000

in Sales

(10.6%)

$50,000 to

$99,999

in Sales

(9.9%)

100,000 to

$499,999

in Sales

(9.7%)

$500,000 to

$999,999

in Sales

(9.0%)

> $1 mil

in Sales

(8.8%) A B C D E F G

Farmer 1 $8,265 $876 $876

Farmer 2 $66,187 $5,300 $1,603 $6,903

Farmer 3 $220,737 $5,300 $4,950 $16,712 $21,962

Farmer 4 $686,650 $5,300 $4,950 $38,800 $16,798 $65,848

Farmer 5 $3,978,421 $5,300 $4,950 $38,800 $45,000 $262,101 $356,151

9-17-20 3-CFAP Amend. 1 Page 7-45

Par. 235

235 Sales Commodities Payment Components (Continued)

B Payment Calculation (Continued)

All calculations follow the methodology included in this subparagraph. Following is an

explanation for Farmer 1 and Farmer 2.

• Farmer 1 has $5,000 in 2019 crop sales and $3,265 in Christmas tree sales

(Miscellaneous) for a total of $8,265 in 2019 sales (Column A); therefore, only the

10.6 percent payment factor applies. Farmer 1’s gross payment is 10.6 percent multiplied

by $8,265, or $876 (Column B).

• Farmer 2 has a total 2019 sales (excluding tobacco) of $66,187 (Column A); therefore,

2 payment factors apply: 10.6 percent (applied to the first $49,999 in sales) and

9.9 percent (applied to $66,187 minus $49,999, or $16,188 in sales). Farmer 2’s gross

payment is the sum of the first gradation (10.6 percent times $49,999, or $5,300, reflected

in Column B) and the second gradation (9.9 percent times $16,188, or $1,603, reflected

in Column C), for a total payment of $6,903.

236-249 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 7-46

Par. 250

Part 8 Acreage-Based Crops

Section 1 General Information

250 Overview

A Purpose

CFAP 2 for acreage-based crops will provide aid to agricultural producers to provide the

ability to absorb increased marketing costs associated with COVID-19 outbreak. Producers

of acreage-based crops will be partially compensated for on-going market disruptions and for

assistance with the transition to a more orderly marketing system by enabling producers to:

• purchase materials and facilities required in connection with the production and

marketing of agricultural commodities

• remove and dispose of surplus agricultural commodities

• develop new and additional markets, marketing facilities, and uses for the commodities.

Acreage-based crops are divided into 2 categories:

• price trigger crops

• flat-rate crops.

Price trigger crops, defined in subparagraph C, must have a 5 percent or greater price decline,

as described in subparagraph D. Flat-rate crops, defined in subparagraph C, are crops that

either do not meet the 5 percent price decline trigger or do not have data available to

calculate a price change.

B Funding

CFAP 2 payments will be issued using CCC funds.


Par. 250


C Definitions

The following definitions apply to this part.

Agriculture Risk Coverage – County Option (ARC-CO) Benchmark Yield means the 5-year

Olympic determined by FSA as the average of actual average county yields for the most

recent 5 years for which data is available, substituting 80 percent of the county transitional

yield as defined in 1-ARCPLC in each year in which the actual average county yield is less

than 80 percent of the county transitional yield. Separate irrigated and nonirrigated yields, if

established for ARC, were combined to create 1 yield for each commodity in a county. If

needed, a trend-adjusted yield factor will be used to adjust the yield taking into consideration,

but not exceeding, the trend-adjusted yield factor that is used to increase yield history under

the crop insurance endorsement under the Federal Crop Insurance Act (7 U.S.C. 1501-1520).

Eligible acres means the producer’s share of 2020 determined acres, or reported acres, if

determined acres are not present, reported on FSA-578, excluding prevented planting and

experimental acres. Failed acres are considered eligible acres.

Experimental means a crop for which all of the following apply:

• the crop is planted for experimental purposes conducted under the direct supervision of a

State experiment station or commercial company

• production of the crop is destroyed before harvest or used for testing or other

experimental purposes

• a representative of the State experiment station or the commercial company certifies that

any production harvested from the experiment will not be marketed in any form.

Failed acres are acres that were timely planted with the intent to harvest, but because of

disaster related conditions, the crop failed before it could be brought to harvest.

Flat-rate crop means alfalfa, amaranth grain, buckwheat, canola, cotton, ELS, crambe

(colewort), einkorn, emmer, flax, guar, hemp, indigo, industrial rice, kenaf, khorasan, millet,

mustard, oats, peanuts, quinoa, rapeseed, rice, rice, sweet, rice, wild, rye, safflower, sesame,

speltz, sugar beets, sugarcane, teff, triticale, and other crops as determined by the Secretary.

The term excludes hay, except alfalfa, and crops with intended uses of grazing, green

manure, or left standing.

Hemp means the plant Cannabis sativa L. and any part of that plant, including the seeds

thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers,

whether growing or not, with a THC concentration of not more than 0.3 percent on a dry

weight basis, that is grown under an official certification or license issued by the applicable

governing authority that permits the production of the hemp.


Par. 250


C Definitions (Continued)

Prevented planting means the inability to plant the intended crop acreage with proper

equipment by the final planting date for the crop type because of a natural disaster.

Price trigger crops means any of the following crops: barley, corn, sorghum, soybeans,

sunflowers, upland cotton, wheat (all classes), excluding crops with an intended use of

grazing, green manure, or left standing.

D Price Trigger Crops

For price trigger crops, CFAP 2 benefits will be based on the producer’s:

• eligible acres for the crop, as defined in subparagraph C

• weighted 2020 APH-approved yield, determined in subparagraph 262 D, or if a weighted

2020 APH-approved yield is not available, 85 percent of the weighted 2019 ARC-CO

benchmark yield, determined in subparagraph 262 F.

CFAP 2 payment rates are determined for each eligible price-trigger crop based on:

• the decline in average prices between the weeks of January 13-17, 2020, and

July 27-31, 2020, as provided in subparagraph 284 B

• an 80 percent coverage factor

• estimated share of 2020 crop marketing percentages from harvest through

December 31, 2020, as provided in subparagraph 284 B

Depending on the yield for a specific location, the producer’s payment may calculate to less

than $15 per acre. In these cases, the payment is raised to $15 per acre, which is the payment

rate for flat-rate crops, described in subparagraph E.

E Flat-Rate Crops

For flat-rate crops, CFAP 2 benefits will be based on the producer’s:

• eligible acres for the crop, as defined in subparagraph C

• $15 per acre.


Par. 251

251 General Provisions – Acreage-Based Crops

A Eligible Producers

For both price trigger and flat-rate crops, to be considered eligible for CFAP 2, producers

must:

• meet the definition of eligible producer in paragraph 15

• file a report of acreage for the crop on FSA-578.

B Eligible Acres

CFAP 2 payments for both price-trigger and flat rate crops are based on the producer’s

eligible acres, as defined in subparagraph 250 C, nationwide.

Failed acres are considered eligible acres for CFAP 2.

C Interaction With FSA-578

The automated CFAP 2 application, AD-3117, will interface with CARS to pre-populate the

producer’s eligible acres on the application.

Note: For CFAP purposes, FSA-578 does not need to be certified.

For both price trigger and flat-rate crops, the following items will be prepopulated for the

producer in AD-3117, Part G:

• item 21, Crop – all crops the producer has reported as planted and having a share in

nationwide, as reported on the producer’s 2020 FSA-578’s

• item 22, Total 2020 Reported Acres – the total eligible acres, as defined in

subparagraph 250 C, for each crop nationwide.

Notes: COC may adjust “Total 2020 Reported Acres”, in item 23, if the quantity is

determined to be unreasonable or inaccurate.

See 1-APP for notification requirements.


Par. 251

251 General Provisions – Acreage-Based Crops (Continued)

D Late-Filed FSA-578’s for CFAP 2 Only

In some instances, the producer may not have timely filed FSA-578. For CFAP 2 purposes

only, County Offices may accept late-filed 2020 acreage reports without regard to the

following:

• collecting a late-filed fee

• conducting a farm visit

• collecting farm visit and crop verification fees

• certifying the crop.

If the 2020 acreage report is filed for any purpose other than CFAP 2, the provisions in 2-CP

must be followed.

252-260 (Reserved)


(through 8-24)

Par. 261

Section 2 Price Trigger Crops

261 Eligible Price Trigger Crops

A Eligible Crops

Eligible price-trigger crops must have suffered a 5 percent or greater average price decline

between the week of January 13-17, 2020, and July 27-31, 2020. The following crops are

determined eligible price trigger crops for CFAP 2:

• barley

• corn

• sorghum

• sorghum, dual purpose

• soybeans

• sunflowers

• upland cotton

• wheat (all classes).

Notes: Other crops may be added by the Secretary.

See subparagraph B for eligible types and intended uses of price trigger crops.

9-17-20 3-CFAP Amend. 1 Page 8-25

Par. 261

261 Eligible Price Trigger Crops (Continued)

B Eligible Intended Uses

The following table provides eligible types and intended uses for price trigger crops for

CFAP 2.

Crop Name Type Name Intended Use

Barley All FG, GR, SD

Corn • Amylose

• Blue

• Grainless Forage

• High Amylase

• Popcorn

• Red

• Strawberry Popcorn

• Tropical

• Waxy

• White

• Yellow

FH, GR, PR, SD, SG

Sorghum All FG, GR, SD, SG

Sorghum, Dual

Purpose

All FG, GR, SD, SG

Soybeans All FG, FH, GR, SD, PR

Sunflowers All FG, GR, SD, PR

Upland Cotton

Wheat All FG, GR, SD

Note: See subparagraph C for intended uses not eligible for CFAP 2.

For price trigger crops, CFAP 2 applications will only process and decisions will only be

made for crops and intended uses listed in this paragraph.

C Ineligible Intended Uses and Crop Statuses

Eligible price trigger crops with the following intended uses are not eligible for CFAP 2:

• grazing (GZ)

• left standing (LS)

• green manure (GM).

Eligible price trigger crops with the following are not eligible for CFAP 2:

• crop status code of “X” for experimental

• crop supplemental status code of:

• “P” for prevented planting

• “V” for volunteer.

9-17-20 3-CFAP Amend. 1 Page 8-26

Par. 262

262 Yields for Price Trigger Crops

A Overview

For price trigger crops, CFAP 2 payments will be based on either of the following:

• producer’s weighted 2020 APH-approved yield, as described in subparagraph C

• if a weighted 2020 APH-approved yield is not available, 85 percent of the weighted 2019

ARC-CO benchmark yield, as determined according to subparagraph F.

Note: Yields are not a factor for flat-rate crops; therefore, yields are only determined

according to this paragraph for price trigger crops.

B 2020 APH-Approved Yields

The CFAP 2 application software will interface with the RMA-shared service each time an

automated application is initiated. If a match is found, based on the producer’s tax ID

number, RMA will return to FSA, by county, the producer’s:

• 2020 APH-approved yield

• 2020 insured acreage.

Note: The yield and acres returned from RMA represents a blend of irrigated and

nonirrigated yields for the producer by county.

RMA will return to FSA the data listed in this subparagraph for all counties where the tax ID

number matches:

• primary insurance policyholder

• secondary insurance policyholder, if the secondary policyholder is the CFAP 2

applicant’s spouse.

9-17-20 3-CFAP Amend. 1 Page 8-27

Par. 262

262 Yields for Price Trigger Crops (Continued)

C Weighted 2020 APH-Approved Yields

For producers who insured a price-trigger crop under an RMA policy or plan of insurance,

the producer’s yield for CFAP 2 will be the weighted 2020 APH-approved yield for all of the

producer’s insured acres nationwide, as determined in subparagraph D.

For price-trigger crops with a weighted 2020 APH-approved yield, AD-3117, item 24,

Weighted Insurance Approved Yield, will be prepopulated for the producer in Part G.

Notes: COC may adjust “Weighted Insurance Approved Yield”, in item 25, if the quantity is

determined to be unreasonable or inaccurate.

See 1-APP for notification requirements.

D Calculating Weighted 2020 APH-Approved Yield

The CFAP 2 application software will calculate a producer’s weighted 2020 APH-approved

yield by averaging the producer’s 2020 APH-approved yields for the crop nationwide and

weighting the yield based on the producer’s 2020 insured acres nationwide, as provided in

the following table.

Important: This is an automated calculation. The calculation is provided for

informational purposes only.

Step Instruction

1 For each county and insurance unit, the expected production is calculated by

multiplying:

• 2020 insured acres, times

• 2020 APH-approved yield.

2 Expected production nationwide is calculated by summing the expected

production for all counties and units.

3 2020 insured acres nationwide is calculated by summing 2020 insured acres for

all counties and units.

4 Weighted 2020 APH-approved yield is calculated by dividing:

• expected production nationwide (result in step 2), by

• 2020 insured acres nationwide (result in step 3).

9-17-20 3-CFAP Amend. 1 Page 8-28

Par. 262


D Calculating Weighted 2020 APH-Approved Yield (Continued)

If a producer is growing a price trigger crop on uninsured acres in a county, but has insured

acres for the same price-trigger crop in another county, the producer will receive the

weighted 2020 APH-approved yield for the uninsured acres.

If a producer does not have a weighted 2020 APH-approved yield, the producer will be

assigned the weighted ARC-CO 2019 benchmark yield, as determined in subparagraph F.

Example 1:

Producer E applies for CFAP 2 for corn, crop code 041. Producer E has an RMA insurance

policy on corn (041) in 5 counties nationwide. The following are the 2020 insured acres and

APH-approved yields returned from RMA for Producer E nationwide.

The CFAP 2 application software will determine the Weighted 2020 APH-Approved Yield

for Producer E, as follows.

Important: This is an automated calculation. The calculation is provided for informational

purposes only.

• Step 1 - Expected production, by county and unit, is determined by multiplying 2020

insured acres, times APH-approved yield.

County Insured Acres APH-Approved Yield Expected Production

A 6.7 118 790.6

B 18.4 91 1,674.4

C 47.7 151 7,202.7

D 91.8 151 13,861.8

E 10.4 96 998.4

Total 175 24,527.9

• Step 2 - Expected production nationwide is determined by summing the expected

production for all counties and units. Producer E’s expected production nationwide is

24,527.9 bushels.

• Step 3 - 2020 insured acres nationwide is determined by summing insured acres for all

counties and units. Producer E’s 2020 insured acres nationwide are 175 acres.

• Step 4 - Weighted 2020 APH-approved yield is determined by dividing expected

production nationwide, by insured acres nationwide. Producer E’s weighted 2020

APH-approved yield is equal to 24,527.9 bushels, divided by, 175 acres, equals

140.16 weighted 2020 APH-approved yield.

9-17-20 3-CFAP Amend. 1 Page 8-29

Par. 262


D Calculating Weighted 2020 APH-Approved Yield (Continued)

Example 1 (Continued):

Producer E files FSA-578 for 175 acres of corn. Producer E’s AD-3117, Part G, will

automatically pre-populate item 22, Total 2020 Reported Acres, and item 24, Weighted

Insurance Approved Yield, as follows.

E 2019 ARC-CO Benchmark Yields

For producers that do not have a weighted 2020 APH-approved yield for a crop, as described

in subparagraph D, the producer’s CFAP 2 yield for the crop will be determined by

multiplying:

• weighted 2019 ARC-CO benchmark yield, as determined in subparagraph F, times

• 85 percent.

F Weighted 2019 ARC-CO Benchmark Yield

If applicable, the producer’s weighted 2019 ARC-CO benchmark yield will be determined

for the crop based on 85 percent of the producer’s:

• eligible acres, defined is subparagraph 250 C, by physical location county

• 2019 ARC-CO benchmark yield for each physical location county.


purposes only.

When applicable, the CFAP 2 application software will calculate and prepopulate 85 percent

of the weighted 2019 ARC-CO benchmark yield on AD-3117, item 26, 85 percent of

Weighted County Yield, as follows.

9-17-20 3-CFAP Amend. 1 Page 8-30

Par. 262


F Weighted 2019 ARC-CO Benchmark Yield (Continued)

Example:

Producer A is determined to have the following eligible acres (FSA-578) and 2019 ARC-CO

benchmark yields for barley, by physical location.

County

Eligible Acres

2019 ARC-CO

Benchmark Yield

Expected Production

A 350 76 26,600

B 100 73.6 7,360

Total 450 33,960

Producer A’s weighted 2019 ARC-CO benchmark yield is calculated by dividing:

• 33,960 bushels of expected production nationwide, divided by

• 450 eligible acres nationwide, equals

• 75.47 weighted 2019 ARC-CO benchmark yield.

Producer A’s CFAP 2 benefits will be based on:

• 75.47 weighted 2019 ARC-CO benchmark yield, times

• 85 percent, equals

• 64.15 bushels.


purposes only.

Producer A files FSA-578 for 450 acres of barley nationwide. Producer E’s AD-3117,

Part G, will automatically pre-populate item 22, Total 2020 Reported Acres, and item 26,

85% of Weighted County Yield, as follows.

263-272 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 8-31

(through 8-50)

Par. 273

Section 3 Flat-Rate Crops

273 Eligible Flat-Rate Crops

A Eligible Crops

Eligible flat-rate crops are crops that either do not meet the 5 percent price decline trigger or

do not have data available to calculate a price change. The following crops are determined

eligible flat-rate crops for CFAP 2:

• alfalfa • mustard

• amaranth grain • oats

• buckwheat • peanuts

• canola • quinoa

• cotton, ELS • rapeseed

• crambe (colewort) • rice

• einkorn • rice, sweet

• emmer • rice, wild

• flax • rye

• guar • safflower

• hemp • sesame

• indigo • speltz

• industrial rice • sugar beets

• kenaf • sugarcane

• khorasan • teff

• millet • triticale.

Notes: Other crops may be added by the Secretary.

All intended uses of flat-rate crops are eligible for CFAP 2, except for the intended

uses listed in subparagraph B.

For flat-rate crops, CFAP 2 applications will only process and decisions will only be made

for crops and intended uses listed in this paragraph.

9-17-20 3-CFAP Amend. 1 Page 8-51

Par. 273

273 Eligible Flat-Rate Crops (Continued)

B Ineligible Intended Uses and Crop Statuses

Eligible flat-rate crops with the following intended uses are not eligible for CFAP 2:

• grazing (GZ)

• left standing (LS)

• green manure (GM).

Eligible flat-rate crops with the following are not eligible for CFAP 2:

• crop status code of “X” for experimental

• crop supplemental status code of:

• “P” for prevented planting

• “V” for volunteer.

C Eligible Acres

CFAP 2 benefits for flat-rate crops are based on a payment rate of $15 per acre; therefore,

benefits are calculated based on a producer’s eligible acres. The automated CFAP 2

application, AD-3117, will interface with CARS to pre-populate the producer’s eligible acres

on the application, as provided in subparagraph 251 C.

Yields are not a factor for flat-rate crops.

274-283 (Reserved)

9-17-20 3-CFAP Amend. 1 Page 8-52

(through 8-70)

Par. 284

Section 4 Payments

284 Price Trigger Crops Payment Calculation

A Payment Calculation Overview

For price trigger crops, the CFAP 2 payment will be equal to the greater of:

• result of multiplying:

• producer’s eligible acres, as defined in subparagraph 250 C, times

• producer’s weighted 2020 APH-approved yield, or if a weighted 2020 APH-approved

yield is not available, 85 percent of the weighted 2019 ARC-CO benchmark yield,

times

• applicable crop marketing percentage, provided in subparagraph B, times

• applicable crop payment rate, provided in subparagraph B


• producer’s eligible acres, as defined in subparagraph 250 C, times

• $15 payment rate per acre.

B Payment Rates

Payment rates for price trigger crops are based on the following factors:

• the decline in average prices between the weeks of January 13-17, 2020, and

July 27-31, 2020

• an 80 percent coverage factor

• share of 2020 crop marketing percentages from harvest through December 21, 2020.

9-17-20 3-CFAP Amend. 1 Page 8-71

Par. 284

284 Price Trigger Crops Payment Calculation (Continued)

B Payment Rates (Continued)

The following table provides the payment factors and payment rates for eligible price trigger

crops.

Crop Units

Average

Price

Jan 13-17

Average

Price

July 27-31

Change

in Price

Payment

Rate

(80% factor)

Crop

Marketing

Percentage

$/unit $/unit $/unit $/unit percent

Barley bu 4.27 3.60 -0.67 0.54 63

Corn bu 4.02 3.29 -0.73 0.58 40

Cotton, Upland lb 0.72 0.62 -0.10 0.08 46

Sorghum bu 3.82 3.12 -0.70 0.56 55

Soybean bu 9.63 8.91 -0.72 0.58 54

Sunflowers lb 0.18 0.16 -0.02 0.02 44

Wheat (all

classes)

bu 5.57 4.89 -0.68 0.54 73

9-17-20 3-CFAP Amend. 1 Page 8-72

Par. 284


C Payment Calculation Example 1

Producer E:

• applies for CFAP 2 for corn, crop code 041

• files 2020 FSA-578’s for 175 acres of corn nationwide

• has an RMA insurance policy on corn (041) in 5 counties nationwide for which a

weighted 2020 APH-approved yield of 140.16 bushels was calculated, as calculated

according to subparagraph 262 F.

Producer E’s CFAP 2 payment is equal to the greater of:

• the result of multiplying:

• 175 eligible acres, times

• 140.16 bushels, weighted 2020 APH-approved yield, times

• $0.58 corn payment rate, times

• .40, crop marketing percentage, equals

• $5,690.50



• $15 payment rate per acre, equals

• $2,625.

Producer E’s CFAP 2 payment is equal to $5,690.50, before applying any applicable

payment reductions.

9-17-20 3-CFAP Amend. 1 Page 8-73

Par. 284


D Payment Calculation Example 2

Producer A:

• applies for CFAP 2 for barley

• files 2020 FSA-578’s for 450 acres of barley nationwide

• does not have RMA crop insurance on the 450 acres of barley

• has a weighted 2019 ARC-CO benchmark yield equal to 75.47 bushels, as calculated

according to subparagraph 262 F.

Producer A’s CFAP 2 payment is equal to the greater of:



• 75.47 bushels, 2019 ARC-CO benchmark yield, times

• $0.54, barley payment rate, times

• .63 crop marketing percentage rate, equals

• $11,553.70.




• $6,750.

Producer A’s CFAP 2 payment is equal to $11,553.70, before applying any applicable

payment reductions.

9-17-20 3-CFAP Amend. 1 Page 8-74

Par. 285

285 Flat-Rate Crops Payment Calculation

A Payment Calculation Overview

For flat-rate crops, the CFAP 2 payment will be calculated by multiplying:

• eligible acres, as defined in subparagraph 250 C, for the crop, times

• $15 payment rate per acre.

B Example – Flat-Rate Crop Payment Calculation

Producer C:

• applies for CFAP 2 for Canola, crop code 0711

• files 2020 FSA-578’s for 200 acres of Canola nationwide.

Producer C’s CFAP 2 payment will be calculated by multiplying:

• 200, eligible acres, times


• $3,000, before applying any payment reductions.

9-17-20 3-CFAP Amend. 1 Page 8-75

Exhibit 1

Reports, Forms, Abbreviations, and Redelegations of Authority

Reports

None.

Forms

This table lists all forms referenced in this handbook.

Number Title

Display

Reference Reference

AD-1026 Highly Erodible Land Conservation (HELC) and

Wetland Conservation (WC) Certification (Includes

Form AD-1026 Appendix)

5, 18, 19, 37,

51, 67, 68

AD-3117 Coronavirus Food Assistance Program 2 (CFAP 2)

Application

Ex. 20 Text

CCC-36 Assignment of Payment 65, 68

CCC-37 Joint Payment Authorization 65, 68

CCC-901 Members Information 5, 19, Ex. 20

CCC-902 Farm Operating Plan for Payment Eligibility 2009

and Subsequent Program Years

5, 16, 19, 37,

51, 68, Ex. 20

CCC-902E Farm Operating Plan for an Entity 19

CCC-902I Farm Operating Plan for an Individual 19

CCC-903 Worksheet for Payment Eligibility and Payment

Limitation Determinations

19

CCC-941 Average Adjusted Gross Income (AGI)

Certification and Consent to Disclosure of Tax

Information - Agricultural Act of 2014

5, 17, 19, 37,

51, 67, 68

CCC-942 Certification of Income From Farming, Ranching,

and Forestry Operations

5, 17, 19, 37,

68

FSA-325 Application for Payment of Amounts Due Persons

Who Have Died, Disappeared, or Have Been

Declared Incompetent

65

FSA-578 Report of Acreage 250, 251, 262,

284, 285,

Ex. 20

SF-3881 ACH Vender/Miscellaneous Payment Enrollment

Form

68

9-17-20 3-CFAP Amend. 1 Page 1

Exhibit 1

Reports, Forms, Abbreviations, and Redelegations of Authority (Continued)

Abbreviations Not Listed in 1-CM

This table lists all abbreviations not listed in 1-CM.

Approved

Abbreviations Term Reference

ARC-CO Agriculture Risk Coverage-County Option 250, 262, 284

CARES Act Coronavirus Aid, Relief, and Economic Stability Act 1, 22, Ex. 20

CARS Crop Acreage Reporting System 251, 273

CFAP Coronavirus Food Assistance Program Text, Ex. 2, 20

IPIA Improper Payments Information Act 3

LP limited partnership 16, Ex. 20

PPB Program Policy Branch, SND 1

SND Safety Net Division 1

Redelegations of Authority

This table lists the redelegations of authority in this handbook.

Redelegation Reference

In routine cases, COC may redelegate, in writing, to CED the authority to

review and approve AD-3117.

The redelegation must define what COC considers routine.

1, 51


Exhibit 2

Definitions of Terms Used in This Handbook

Aquaculture

Aquaculture means any species of aquatic organisms grown as food for human consumption, fish

raised as feed for fish that are consumed by humans, ornamental fish propagated and reared in an

aquatic medium.

Breeding Stock

Breeding stock means:

• for cattle, bulls and cows

• for hogs and pigs, boars and sows

• for lambs and sheep, rams and ewes.

Broilers

Broilers includes any chicken that has been commercially produced for meat purposes that has

left the farm for slaughter, and not used for laying or breeding purposes.

Commodity

Commodity means an agricultural commodity produced in the United States and intended to be

marketed for commercial production that has been designated as eligible for payments under

CFAP.

Controlled Environment

Controlled environment means an environment, with respect to crops for which a controlled

environment is expected to be provided, including but not limited to ornamental nursery,

aquaculture (including ornamental fish), and floriculture, an environment in which everything

that can practicably be controlled with structures, facilities, growing media (including but not

limited to water, soil, or nutrients) by the producer, that is in fact controlled by the producer, as

determined by industry standards.

Eggs

Eggs means dried, frozen, liquid, and shell eggs.


Exhibit 2

Definitions of Terms Used in This Handbook (Continued)

Experimental

Experimental means a crop for which all of the following apply:

• the crop is planted for experimental purposes conducted under the direct supervision of a

State experiment station or commercial company

• production of the crop is destroyed before harvest or used for testing or other experimental

purposes

• a representative of the State experiment station or the commercial company certifies that any

production harvested from the experiment will not be marketed in any form.

Flat-Rate Crop

Flat-rate crop means alfalfa, amaranth grain, buckwheat, canola, cotton, ELS, crambe (colewort),

einkorn, emmer, flax, guar, hemp, indigo, industrial rice, kenaf, khorasan, millet, mustard, oats,

peanuts, quinoa, rapeseed, rice, rice, sweet, rice, wild, rye, safflower, sesame, speltz, sugar beets,

sugarcane, teff, triticale, and other crops as determined by the Secretary. The term excludes hay,

except alfalfa, and crops with intended uses of grazing, green manure, or left standing.

Floriculture

Floriculture means cut flowers and cut greenery from annual and perennial flowering plants

grown in a container or controlled environment for commercial sale.

Hemp

Hemp means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof

and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether

growing or not, with a THC concentration of not more than 0.3 percent on a dry weight basis,

that is grown under an official certification or license issued by the applicable governing

authority that permits the production of the hemp.

Hogs

Hogs means any swine 120 pounds or more.


Exhibit 2


Ineligible Commodities

Ineligible commodities for CFAP 2 means any of the following commodities: birdsfoot and

trefoil, clover, cover crop, fallow, forage soybeans, forage sorghum, gardens (commercial and

home), grass, kochia (prostrata), lespedeza, milkweed, mixed forage, pelts (excluding mink),

perennial peanuts, pollinators, sunn hemp, vetch, seed of ineligible crops, and other commodities

as determined by the Secretary.

Nursery

Nursery means decorative or nondecorative plants grown in a container or controlled

environment for commercial sale.

Other Livestock

Other livestock means any of the following livestock: animals commercially raised for food, fur,

fiber, or feathers, including alpacas, bison, buffalo, beefalo, deer, ducks, elk, emus, geese, goats,

guinea pigs, llamas, mink, ostrich, pheasants, quail, rabbits, reindeer, turkey, and other livestock

as determined by the Secretary. It excludes all equine, breeding stock, companion or comfort

animals, pets, and animals raised for hunting or game purposes and other livestock, as

determined by the Secretary.

Pigs

Pigs means any swine weighing less than 120 pounds.

Prevented Planting

Prevented planting means the inability to plant the intended crop acreage with proper equipment

by the final planting date for the crop type because of a natural disaster.

Price Trigger Commodities

Price trigger commodities means price trigger crops and price trigger livestock and products as

defined in this section.

Price Trigger Crops

Price trigger crops means any of the following crops: barley, corn, sorghum, soybeans,

sunflowers, upland cotton, wheat (all classes), excluding crops with an intended use of grazing,

green manure, or left standing.


Exhibit 2


Price Trigger Livestock and Products

Price trigger livestock and products means any of the following livestock and products: beef

cattle, broilers, dairy (cow milk), eggs, lambs, sheep, hogs, and pigs; excluding breeding stock.

Producer

Producer means a person or legal entity who shares in the risk of producing a commodity. The

term does not include contract growers. Producers who are not in the business of farming at the

time of application are not considered eligible producers. Dairy operations that dissolve or have

dissolved on or after September 1, 2020, may apply and may be considered eligible.

Sales-Based Commodities

Sales-based commodities means, as defined in this section, aquaculture, sales-based crops,

nursery crops and floriculture, other livestock, and the following commodities: goat milk, mink

(including pelts); mohair, wool, and other commodities as determined by the Secretary.

Sales-Based Crops

Sales-based crops means ambrosia, arundo, camelina, cactus, cardoon, fruits, honey, horticulture,

maple sap, tobacco, tree nuts, and vegetables. The term excludes crops with an intended use of

grazing, green manure, or left standing.


Exhibit 20

(Par. 50, 97)

AD-3117, Coronavirus Food Assistance Program 2 (CFAP 2) Application

A Completing AD-3117

The following table provides instructions for completing a manual AD-3117.

Note: For FSA County Offices, enter the data for all AD-3117’s received in the County Office

in the CFAP2 application system to print the completed AD-3117 (CFAP2 application)

for the applicant.

Item Instructions

For COC Use Only

1 Enter the producer’s recording State.

2 The program year will be 2020.

3 Enter the producer’s recording county.

4 Enter application number.

Note: This number is assigned by the automated system.

Part A – Producer Agreement

For Informational Purposes

Applicants who are an individual person must complete automated CCC-902 or manual

CCC-902, Parts A and B, and provide name, address, taxpayer identification number, and

citizenship status. An individual who is not a U.S. resident or lawful alien must also report

contributions of labor, capital and land contributions to the farming operation.

Applicants who are a legal entity, including General Partnership or Joint Venture, must

complete automated CCC-902 or manual CCC-901 and provide the name, address and taxpayer

identification number for the legal entity and all members, partners or stockholders with an

ownership interest. If any member, partner or stockholder is not a U.S. resident or lawful alien,

CCC-902 must be completed to report contributions of labor to the legal entity.

All applicants must submit CCC-941. Applicants with an average AGI of more than $900,000

for the 2016, 2017, and 2018 tax years may submit CCC-942 to certify that at least 75 percent

of the applicant’s AGI is derived from farming, ranching, or forestry-related activities.

Applicants who exceed the AGI limitation and do not submit CCC-942 will not be eligible for

payment.

Part B – Producer Information

5 Enter the producer’s name, address, including the ZIP code, and telephone number,

including area code.

Part C – Dairy Production

6 Displays the unit of measure for dairy production as pounds (LBS).

7 Enter the total production from April 1, 2020, to August 31, 2020, in pounds (LBS).


Exhibit 20

(Par. 50, 97)

AD-3117, Coronavirus Food Assistance Program 2 (CFAP 2) Application (Continued)

A Completing AD-3117 (Continued)

Item Instructions

Part C – Dairy Production (Continued)

8 COC may enter the adjusted total production from April 1, 2020, to August 31, 2020, if

applicable.

Note: An entry is only required when COC determines the total production is different

than what is certified to by the producer in item 7.

9 System will display a calculated estimated total production for September 1, 2020,

through December 31, 2020.

Note: The calculation will be item 7 divided by 153 (number of days between

April 1, 2020, and August 31, 2020), then multiplying the resulting figure by

122 (number of days between September 1, 2020, and December 31, 2020).

When item 10A is completed, the figure of 122 (days) will be adjusted, if

applicable.

10A Enter the last date milk was produced for those producers applying that are no longer

producing milk.

Note: If you cease producing milk before December 31, 2020, or if you are a seasonal

dairy, you are required to notify the FSA County Office of the date you stopped

producing milk.

10B COC may enter the adjusted last date milk was produced, if applicable.

Note: An entry is only required when COC determines the last date milk was

produced is different than what is certified to by the producer in item A.

Part D – Egg/Broiler Production

11 Displays the eligible commodities.

The eligible commodities for Part D are:

• Broilers

• Dried Eggs

• Frozen Eggs

• Liquid Eggs

• Shell Eggs.


Exhibit 20

(Par. 50, 97)



Item Instructions

Part D – Egg/Broiler Production (Continued)

12 Displays the applicable unit of measure for the commodities entered in item 11.

The applicable unit of measure for the eligible commodities in Part D are:

• Broilers – Head

• Dried Eggs – Pounds (LBS)

• Frozen Eggs – Pounds (LBS)

• Liquid Eggs – Pounds (LBS)

• Shell Eggs – Dozen.

13 Enter the 2019 total production nationally for the commodities entered in item 11, if

applicable.

Note: If farming began after December 31, 2019, then the producer must provide 2020

production.

14 COC may enter the adjusted 2019 total production, if applicable.

Note: An entry is only required when COC determines the 2019 total production is

different than what is certified to by the producer in item 13.

Part E – Livestock Inventory (Excluding Breeding Stock)

15 Displays the eligible livestock for Part E.

The eligible livestock are:

• Cattle (Beef Cattle Only)

• Hogs/Pigs

• Sheep.

16 Enter the highest owned inventory (excluding breeding stock) on a date between

April 16, 2020, and August 31, 2020, for the livestock entered in item 15, if applicable.

17 COC will enter the adjusted highest owned inventory (excluding breeding stock) on a

date between April 16, 2020, and August 31, 2020, if applicable.

Note: An entry is only required when COC determines the highest owned inventory

(excluding breeding stock) on a date between April 16, 2020, and

August 31, 2020, is different than what is certified to by the producer in

item 16.


Exhibit 20

(Par. 50, 97)



Item Instructions

Part F – Sales Commodities

18 Displays the eligible sales commodities.

The eligible sales commodities are:

• Aquaculture

• Crops (excluding Part G crops)

• Nursery/Floriculture Crops

• Miscellaneous

• Other Livestock (Excluding Breeding Stock)

Note: Other livestock means any of the following livestock: animals

commercially raised for food, fur, fiber, or feathers, including alpacas,

bison, buffalo, beefalo, deer, ducks, elk, emus, geese, goats, guinea pigs,

llamas, mink, ostrich, pheasants, quail, rabbits, reindeer, and turkeys.

• Tobacco.

19 Enter the total dollar value of 2019 sales for the commodity(s) in item 18.

Note: If farming began after December 31, 2019, then the producer must provide 2020

sales.

20 COC will enter the adjusted dollar value of 2019 total commodity(s) sales, if

applicable.

Note: An entry is only required when COC determines the dollar value of 2019 total

commodity(s) sales is different than what is certified to by the producer in

item 19.


Exhibit 20

(Par. 50, 97)



Item Instructions

Part G – Acreage-Based Crops

21 System will display eligible commodities based on the 2020 FSA-578’s on file,

nationally for the producer.

22 System will display the total 2020 reported acres or determined acres, if available, on

the 2020 FSA-578’s on file, nationally for the producer, for the commodities displayed

in item 21.

23 COC will enter adjusted total 2020 reported acres, if applicable.

Note: An entry is only required when COC determines the acres to be unreasonable or

inaccurate.

24 System will display the producer’s Weighted Insurance Approved Yield from RMA for

the commodities displayed in item 21, if applicable.

Note: If no Weighted Insurance Approved Yield is available, then item 26 will be

populated.

25 COC will enter Adjusted Weighted Insurance Approved Yield, if applicable.

Note: An entry is only required when COC determines the Weighted Insurance

Approved Yield is different than the result in item 24.

26 System will display 85 percent of the Weighted County Yield for the commodity

displayed in item 21, if applicable.

Note: Will only display if item 24 is not available.


Exhibit 20

(Par. 50, 97)



Item Instructions

Part H – Increased Payment Limitation for

Corporations, Limited Liability Companies, Limited Partnerships, Trusts and Estates

27

A-C

Enter the member, partner stockholder, beneficiary, or heir name(s) who provide

400 hours or more of active personal labor or active personal management, or

combination thereof, to the farming operation identified in Part A, item 5.

Note: Entry only required to be completed by Corporations, LLC’s, LP’s Trusts, or

Estates.

Part I – Producer Certification

28A Producer applying for CFAP 2 benefits must sign.

28B Enter title and/or relationship to the individual when signing in a representative

capacity.

Note: If the producer signing is not signing representative capacity, this field should

be left blank.

28C Enter the date AD-3117 is signed in item 28A.

Part J – COC Determination

29 Displays the payment parts – CARES (Tobacco Only) and CCC.

30 COC or their representative will sign.

Note: COC must complete for both payment parts, if applicable in item 29.

31 Enter the date COC or their representative signs AD-3117.

32 COC or their representative will check (✓) either “Approved” or “Disapproved” for

both payment parts in item 29.

Important: AD-3117 will be approved or disapproved as certified by the producer

after applicable COC adjustment fields are completed.


Exhibit 20

(Par. 50, 97)


B Example of AD-3117

The following is an example of AD-3117.


Exhibit 20

(Par. 50, 97)


B Example of AD-3117 (Continued)
